The XRP price is currently consolidating above the $0.5400 support level, indicating a potential for a fresh rally. However, the cryptocurrency is facing challenges in clearing the crucial resistance levels at $0.588 and $0.600. These resistance levels have proven to be significant hurdles for XRP, hindering its ability to initiate a notable upward movement.
After experiencing a decent recovery wave, XRP was able to establish a base above the $0.5640 pivot level. During this period, the cryptocurrency underwent a consolidation phase, which set it apart from Bitcoin and Ethereum. While there was a slight increase above the $0.570 resistance zone, the bears became active near the $0.5880 resistance zone.
Moreover, a major bearish trend line is forming with resistance near $0.600 on the 4-hour chart of the XRP/USD pair. The trend line coincides with the 61.8% Fibonacci retracement level of the recent decline from the $0.6238 swing high to the $0.5545 low. This overall bearish outlook is reinforced by the fact that the price is currently trading below $0.5920 and the 100 simple moving average (4 hours).
For XRP to regain bullish momentum and initiate a fresh rally, it is imperative for the cryptocurrency to breakthrough and clear the $0.588 and $0.600 resistance levels. A close above the $0.600 resistance zone could potentially spark a strong upward movement. If the bulls manage to stay in control and push the price above the key resistance level at $0.625, there could be a rally towards the next resistance level at $0.665. Further gains might even drive the price towards the $0.700 resistance level.
Possible Downside Scenarios
However, if XRP fails to clear the $0.600 resistance zone, it could experience a fresh decline. The initial support level on the downside is at $0.5450, followed by a more significant support level at $0.5220. A downside break and close below the $0.5220 level might lead to a further acceleration in the downward movement, potentially causing XRP to retest the $0.4850 support zone.
Analyzing the technical indicators, the 4-hour MACD for XRP/USD suggests a loss of momentum in the bullish zone. Additionally, the 4-hour RSI (Relative Strength Index) is currently below the 50 level.
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