XRP Price Reaches Support: Will It Trigger a Turnaround?

XRP price started a downside correction from the $0.6480 resistance. The price is now testing the $0.550 support and might eye a fresh increase.

• XRP price started a downside correction below the $0.620 and $0.600 levels.
• The price is now trading below $0.600 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $0.5750 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could start a fresh increase if it clears the $0.580 resistance zone.

XRP Price Hits Key Support

XRP price struggled to extend gains above the $0.6450 and $0.650 levels. The price started a downside correction below the $0.600 level like Ethereum and Bitcoin.

There was a move below the $0.5850 and $0.580 support levels. The price dipped below the 50% Fib retracement level of the upward wave from the $0.4925 swing low to the $0.6475 high. However, the bulls are now active near the $0.5500 support.

The 61.8% Fib retracement level of the upward wave from the $0.4925 swing low to the $0.6475 high is acting as a support. The price is now trading below $0.600 and the 100-hourly Simple Moving Average.

On the upside, the price is facing hurdles near the $0.570 level. The first major resistance is near the $0.5750 level. There is also a key bearish trend line forming with resistance at $0.5750 on the hourly chart of the XRP/USD pair.  The next key resistance could be $0.580.

A clear move above the $0.580 resistance might send the price toward the $0.5950 resistance. The next major resistance is near the $0.600 level. Any more gains might send the price toward the $0.620 resistance or even $0.650 in the near term.

More Downsides?

If XRP fails to clear the $0.580 resistance zone, it could continue to move down. Initial support on the downside is near the $0.5520 level. The next major support is at $0.550.

If there is a downside break and a close below the $0.550 level, the price might continue to decline toward the $0.5320 support. The next major support sits at $0.5250.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.5550 and $0.5500.

Major Resistance Levels – $0.5750 and $0.5800.

Source link