In recent trading sessions, the price of XRP has experienced a significant decline, falling below the $0.50 mark. This downward trend has seen XRP testing the $0.4700 level, with the cryptocurrency now attempting to initiate a short-term recovery phase. Despite some positive movements, XRP is still struggling to gain momentum, currently trading below $0.4850 and the crucial 100-hourly Simple Moving Average.
Looking at the hourly chart of the XRP/USD pair, we can see that there was a break above a bearish trend line with resistance at $0.480. While this might signal a potential recovery, it is important to note that the bears could still be active near the $0.4880 resistance level. This resistance level has proven to be a tough barrier for XRP, preventing any significant upward movement.
Unlike Ethereum and Bitcoin, XRP has failed to recover above the $0.4880 resistance level. This failure has resulted in extended losses, pushing the price below $0.480 and even testing the $0.470 support zone. While there has been a slight uptick in price, with XRP climbing above the 23.6% Fib retracement level, the overall outlook remains bearish.
On the upside, the immediate resistance for XRP lies around the $0.4850 level. A breach of this resistance could lead to a test of the $0.4880 level, followed by the 50% Fib retracement level at $0.4920. If XRP manages to break above these key levels, we could see a sustained uptrend towards the $0.50 mark and beyond. However, failure to overcome the $0.4850 resistance might result in further downside.
In terms of support, the initial level to watch is at $0.4750, followed by a more significant support zone at $0.470. A decisive close below $0.470 could trigger additional sell-offs, potentially leading to a retest of the $0.4550 support level. These support levels will be critical in determining the short-term price action for XRP.
The current price action for XRP suggests a bearish bias, with the cryptocurrency struggling to regain bullish momentum. While there are signs of a potential recovery, the presence of strong resistance levels poses a significant challenge for XRP bulls. Traders and investors should closely monitor the key support and resistance levels mentioned above to gauge the future direction of XRP price movement.
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