Ripple price is currently facing strong resistance near the $0.520 level against the US dollar. Despite Bitcoin’s success, XRP is struggling to maintain a bullish stance. To maintain the positive momentum, it is critical for XRP price to stay above the key support level of $0.472.
Breaking Down Analysis:
A significant bullish trendline break occurred, which previously found support near $0.4910 on the 4hr XRP/USD chart sourced from Kraken. This led to a drop below the $0.50 support level. The bears managed to push the price further down, crossing the 50% Fibonacci retracement level of the $0.4550 swing low to $0.5263 high.
Current Market Situation:
Currently, XRP is trading above $0.52, along with the 55 (4-hour) simple moving average. Currently testing the 61.8% Fibonacci retracement level of the advance from $0.4550 to $0.5263. However, price should exercise caution as it faces resistance near $0.490 and the 55 (4-hour) simple moving average. The next significant hurdle lies at the $0.5020 level.
Support and Resistance Levels:
If XRP price fails to break above the mentioned resistance level, a downside move is expected. Initial support is found near the $0.4820 level, followed by the central support zone at $0.4715. A break of this level could trigger an acceleration towards the important support at $0.4550. Further declines might even lead to a dip towards the $0.432 mark.
On the upside, a decisive move above the $0.5020 resistance could initiate a steady advance. A break of this could even push the price past the $0.5150 resistance, crossing a connecting bearish trend line. If the momentum continues, the price could reach the $0.540 resistance level.
Analyzing the 4-hour MACD for XRP/USD reveals increasing momentum in the bearish zone. Also, the 4-hour RSI (Relative Strength Index) shows a reading below the 50 level.
Considering the current scenario, Ripple price is struggling to maintain a positive outlook, trading below the $0.50 zone and the 55 (4-hour) simple moving average. It is critical for XRP to stay above the key support level of $0.472 to prevent further declines. Traders and investors should closely monitor price action, especially the resistance levels at $0.490 and $0.5020, to gauge a potential bullish recovery.