The XRP price is currently undergoing a challenging phase as it struggles to clear the critical $0.520 resistance level. With the inability to surpass this hurdle, XRP may face a bearish momentum, signaling a potential downturn in its price. Moreover, the prolonged failure to break resistance levels has put XRP in a vulnerable position.
There are bearish signs looming for XRP below the $0.520 and $0.508 resistance levels. The price is currently trading below $0.520 and the 100 simple moving average (4 hours), further indicating a potential decline. Additionally, a bearish trend line is forming, connecting the resistance near $0.5120 on the 4-hour chart of the XRP/USD pair sourced from Kraken. These indicators suggest a high risk of downsides below the $0.5000 support zone.
Over the past few days, XRP experienced a downside reaction, breaking below the crucial $0.550 pivot level. The bears managed to push the price further down, breaching the $0.500 support zone. However, there was a recent recovery wave that brought the price back above the $0.500 level. The bulls were able to push the price above the 50% Fibonacci retracement level of the downward wave from the $0.5390 swing high to the $0.4850 low.
Despite this recovery, the bears remained active near the $0.525 resistance, preventing XRP from clearing the 76.4% Fibonacci retracement level. Consequently, XRP is now trading in a bearish zone below $0.508 and the 100 simple moving average (4 hours). This stands in stark contrast to the performance of Bitcoin and Ethereum.
On the upside, XRP faces immediate resistance around the $0.512 zone. Furthermore, a bearish trend line is forming with resistance near $0.5120 on the 4-hour XRP/USD chart. The first key resistance lies near $0.520, and a breakthrough above this level could lead to a rise towards the $0.5320 resistance zone. An even stronger momentum might push the price closer to the $0.5550 resistance, potentially triggering a rally towards the $0.5840 resistance level. If the bulls continue their push, XRP could target the $0.6000 resistance.
However, failure to clear the $0.5120 resistance zone may result in XRP moving further downwards. The initial support on the downside is expected near the $0.500 zone. In the event of a downside break and close below the $0.485 level, XRP’s price could escalate its decline. This would prompt a retest of the $0.450 support zone.
Examining the technical indicators, the 4-hour MACD for XRP/USD is currently gaining pace in the bearish zone. Additionally, the 4-hour RSI (Relative Strength Index) for XRP/USD is below the crucial 50 level. These indicators further support the bearish sentiment surrounding XRP’s current price struggles.
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