XRP price is currently facing challenges as it tries to gain momentum above the $0.5065 resistance against the US dollar. The price is currently trading below both the $0.500 mark and the 100 simple moving average (4 hours). This indicates a lack of bullish strength in the market. Despite this, there was a recent breakthrough of a major bearish trend line near $0.4915 on the 4-hour chart of the XRP/USD pair. However, if the support zone of $0.4880 is breached, the price may continue to move downwards.
Following a consistent decline, XRP found support around the $0.4730 zone and initiated a recovery wave. Similar to Bitcoin and Ethereum, the price moved higher and managed to surpass the $0.4880 resistance level. Bulls were able to push it above the 23.6% Fibonacci retracement level of the main drop from the $0.5510 swing high to the $0.4730 low. Additionally, a significant bearish trend line with resistance near $0.4915 was broken. Despite these positive developments, the bears remained active and the price is currently trading below $0.500 and the 100 simple moving average (4 hours).
The immediate resistance level is located near $0.500, while the first major resistance is at $0.5065. This level also coincides with the 100 simple moving average (4 hours) and the 50% Fibonacci retracement level of the main drop from the $0.5510 swing high to the $0.4730 low. If the price manages to close above $0.5065, it could potentially move towards the $0.521 resistance level. A successful break above this resistance level might even trigger a strong increase towards the $0.550 resistance. If XRP continues to gain momentum, it could potentially reach the $0.585 resistance level. On the other hand, if the price fails to break the $0.5065 resistance zone, it may continue to move downwards.
Initial support on the downside is expected near the $0.488 zone, followed by the major support level at $0.4730. A downside break and close below the $0.4730 level could prompt a significant acceleration in XRP price, potentially leading to a retest of the $0.4320 support zone.
Looking at the technical indicators, the 4-hour MACD for XRP/USD is currently losing pace in the bullish zone. This suggests a weakening of the bullish momentum. However, the 4-hour RSI (Relative Strength Index) for XRP/USD is currently above the 50 level, indicating some positive momentum in the market.
XRP price is currently attempting a fresh increase against the US dollar, but it faces significant obstacles. The failure to gain momentum above the $0.5065 resistance zone could result in a further downward movement. On the other hand, a successful break above this resistance level could pave the way for a potential surge towards higher resistance levels. Traders should closely monitor the support and resistance levels mentioned, as well as the technical indicators, to make informed trading decisions.
