XRP price is moving lower from the $0.732 resistance. The price is now at risk of more losses toward the $0.550 support before the bulls take a stand.
XRP started a downside correction below $0.638 and $0.612.
The price is now trading below $0.625 and the 100 simple moving average (4 hours).
There is a key declining channel forming with resistance near $0.622 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair dive toward the $0.550 support before the bulls take a stand.
XRP Price Turns Red
In the past few days, XRP saw a steady decline from the $0.740 zone. There was a move below the $0.685 and $0.638 support levels. The price even dived below the $0.612 support, underperforming Bitcoin and Ethereum.
There was a recovery wave from $0.572, but the bears were active near $0.638. A high was formed near $0.6385 and the price is now moving lower. There was a break below the 50% Fib retracement level of the upward move from the $0.5723 swing low to the $0.6385 high.
XRP is now trading below $0.625 and the 100 simple moving average (4 hours). There is also a key declining channel forming with resistance near $0.622 on the 4-hour chart.
On the upside, immediate resistance is near the $0.615 level. The first major resistance is near the $0.622 zone or the 100 simple moving average (4 hours) or the channel upper zone. A close above the $0.622 resistance zone could spark a steady increase.
Source: XRPUSD on TradingView.com
The next key resistance is near $0.638. If the bulls remain in action above the $0.638 resistance level, there could be a rally toward the $0.700 resistance. Any more gains might send XRP toward the $0.720 resistance.
More Downsides?
If XRP fails to clear the $0.622 resistance zone, it could start a fresh decline. Initial support on the downside is near the $0.588 zone.
The next major support is at $0.572. If there is a downside break and a close below the $0.572 level, XRP price might accelerate lower. In the stated case, the price could retest the $0.540 support zone.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major Support Levels – $0.588, $0.572, and $0.540.
Major Resistance Levels – $0.622, $0.638, and $0.700.
