XRP price recently experienced a downside correction, testing the $0.572 support level. The cryptocurrency is currently showing signs of a bullish trend if it manages to clear the $0.642 resistance.
Initially, XRP started its downside correction below the $0.650 and $0.620 levels. The price fell below $0.640 and the 100 simple moving average (4 hours). However, a positive sign emerged when a major bearish trend line was broken with resistance near $0.608 on the 4-hour chart of the XRP/USD pair sourced from Kraken.
Following the rejection near the $0.740 zone, XRP initiated a fresh decline. The price broke below the $0.70 and $0.650 support levels, even falling beneath the $0.60 support level. Nonetheless, the bulls took a stand near $0.572, resulting in a low formation.
XRP is now striving for an upward momentum as it surpassed the $0.600 resistance level. Additionally, a significant bearish trend line was also broken with resistance near $0.608 on the 4-hour chart. The next challenge lies in the 23.6% Fib retracement level of the downward move, ranging from the $0.7499 swing high to the $0.5723 low.
As XRP attempts to overcome resistance levels, immediate resistance lies near the $0.615 level. The first major hurdle is situated close to the $0.642 zone or the 100 simple moving average (4 hours). This zone is also near the 50% Fib retracement level of the downward move from the $0.7499 swing high to the $0.5723 low. If successfully surpassed, a substantial increase could be sparked.
Once XRP breaks through the $0.642 resistance, the next significant obstacle presents itself around $0.682. In case the bulls maintain momentum above the $0.682 resistance level, a rally toward the $0.720 resistance is probable. Further gains might potentially drive XRP towards the $0.750 resistance level.
However, if XRP fails to clear the $0.642 resistance, it might encounter a fresh decline. Initial support on the downside can be found near the $0.588 zone. The next major support level lies at $0.572. In the event of a breakdown and close below the $0.572 level, XRP price could accelerate further downwards. This scenario might lead the price to retest the $0.540 support zone.
Looking at the 4-hour MACD for XRP/USD, it is currently gaining pace in the bullish zone. The RSI (Relative Strength Index) for XRP/USD is also promising, currently sitting just above the 50 level.
XRP price experienced a downside correction but is showing potential for a bullish rally if it manages to surpass key resistance levels. With the recent break above a major bearish trend line and positive indicators, XRP may be poised for an upward movement. However, caution is advised as the failure to break through resistance could result in a renewed decline. The immediate focus is on the $0.642 resistance, with further obstacles at $0.682 and $0.720. On the downside, support is expected around $0.588 and $0.572. Traders and investors should closely monitor XRP price movements to determine the next significant market trend.
