Can Bulls Defend This Key Support?

XRP price started a downside correction from the $0.7450 resistance. The bulls are now struggling to keep the price above the $0.5850 support zone.

• XRP started a fresh decline after it failed to clear the $0.7450 resistance.
• The price is now trading below $0.650 and the 100 simple moving average (4 hours).
• There is a key bearish trend line forming with resistance at $0.640 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
• The pair could start a fresh rally if there is a close above the $0.6650 resistance zone.

XRP Price Trims Gains

After a steady increase, XRP price struggled to extend gains above the $0.750 resistance. The price started a downside correction from the $0.7442 high, like Ethereum and Bitcoin.

There was a steady decline below the $0.700 and $0.665 support levels. The price even declined below the $0.600 support. A low was formed near $0.5874 and the price is now consolidating losses. There was a minor increase above the $0.620 level.

The price spiked above the 23.6% Fib retracement level of the downward move from the $0.7442 swing high to the $0.5874 low. However, the bears were active near $0.650. There is also a key bearish trend line forming with resistance at $0.640 on the 4-hour chart of the XRP/USD pair.

Ripple’s token price is now trading below $0.620 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.640 zone. The first key resistance is near $0.6650 or the 50% Fib retracement level of the downward move from the $0.7442 swing high to the $0.5874 low, above which the price could rise toward the $0.70 resistance.

Source: XRPUSD on TradingView.com

A close above the $0.70 resistance zone could spark a strong increase. The next key resistance is near $0.7450. If the bulls remain in action above the $0.7450 resistance level, there could be a rally toward the $0.800 resistance. Any more gains might send the price toward the $0.820 resistance.

More Losses?

If XRP fails to clear the $0.6650 resistance zone, it could start another decline. Initial support on the downside is near the $0.5980 zone.

The next major support is at $0.5850. If there is a downside break and a close below the $0.5850 level, the price might accelerate lower. In the stated case, the price could retest the $0.520 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 – $0.5980, $0.5850, and $0.5200.

Major Resistance Levels – $0.640, $0.6650, and $0.700.