Before the bulls materialized, the price of XRP fell toward the $0.5550 mark. At this point, the price is consolidating and may try to rise above $0.580 once more.
- XRP price started a consolidation phase after a drop toward the $0.5550 zone.
- The price is now trading below $0.580 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $0.5720 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could attempt a recovery wave if it clears the $0.580 resistance zone.
XRP Price Starts Consolidation
Like Bitcoin and Ethereum, the price of XRP continued to decline below $0.580. Even the $0.5550 zone was tested by the price. It made a low at $0.5538, and the price has just begun to rise again.
The levels of $0.5580 and $0.5620 were crossed. The price moved higher than the 50% Fib retracement level of the decline from the swing high of $0.60 to the low of $0.5538. The bears, however, continued to be active and safeguarded additional gains above $0.5850.
The 100-hourly Simple Moving Average and $0.580 are still being traded below by the price. The $0.5720 mark may provide resistance for the price increase. The hourly chart of the XRP/USD pair also shows the formation of a significant bearish trend line, with resistance at $0.5720.
The $0.5885 mark represents the first significant resistance. It is in proximity to the level of the downward move from the $0.60 swing high to the $0.5538 low, or the 76.4% Fib retracement.
A key resistance of $0.60 could be the next one. The price may move toward the $0.6050 resistance if there is a clear move above the $0.60 resistance. The $0.6160 mark represents the next significant resistance. In the near term, any additional gains could push the price toward the $0.6250 resistance level or possibly $0.6320.
Another Decline?
XRP may initiate another drop if it is unable to break through the $0.5720 resistance zone. The initial downward support is located close to the $0.5640 mark. The next major support is at $0.5550.
In the short term, the price may drop further toward the $0.5320 support level if there is a downside break and a close below the $0.5550 mark. The next major support sits at $0.5120.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major Support Levels – $0.5640 and $0.5550.
Major Resistance Levels – $0.5720 and $0.5885.