XRP Price Struggles to Clear Resistance as Bearish Momentum Looms

XRP Price Struggles to Clear Resistance as Bearish Momentum Looms

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.

It is important to note that the information provided in this article is for educational purposes only and does not represent the opinions of NewsBTC. As with any investment, there are risks involved. Readers are advised to conduct their own research and make informed investment decisions. The usage of information from this website is entirely at the reader’s own risk.

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