XRP price recently underwent a downside correction and tested the $0.572 level. However, the price is now experiencing an upward movement and could potentially gain bullish momentum if it manages to clear the $0.642 resistance zone.
XRP’s Decline and Support Levels
After facing rejection near the $0.740 zone, XRP initiated a fresh decline, slipping below the $0.70 and $0.650 support levels. It even went below $0.60, underperforming when compared to Bitcoin and Ethereum. Eventually, the bulls intervened near the $0.572 mark, resulting in a low formation.
Positive Signs for XRP
XRP is now making efforts towards a fresh increase as it successfully surpassed the $0.600 resistance level. Additionally, there was a significant breakthrough of a major bearish trend line with resistance close to $0.608 on the 4-hour chart of the XRP/USD pair.
Resistance Levels and Potential Rally
The XRP price is currently testing the 23.6% Fibonacci retracement level of the downward movement, which extended from the $0.7499 swing high to the $0.5723 low. In terms of immediate resistance, it lies near the $0.615 mark. The first major resistance level is situated around the $0.642 zone, which is the location of the 100 simple moving average (4 hours). This resistance level is also in proximity to the 50% Fibonacci retracement level of the aforementioned downward move from the $0.7499 swing high to the $0.5723 low.
A decisive breakout above the $0.642 resistance zone could potentially trigger a steady increase in XRP price. The subsequent significant resistance level to overcome would be near $0.682. If the bullish momentum continues above this level, a potential rally towards the $0.720 resistance may ensue. Further gains might lead XRP towards the $0.750 resistance mark.
However, if XRP fails to surpass the $0.642 resistance zone, it might indicate the beginning of a fresh decline. The initial support level on the downside lies near $0.588, followed by a major support zone at $0.572. A downside break and a conclusive close below the $0.572 level could potentially accelerate the XRP price further downwards. In such a scenario, the price might retest the $0.540 support zone.
Looking at the technical indicators, the 4-hour MACD for XRP/USD is currently gaining pace in the bullish zone, suggesting a possible upward movement. The 4-hour RSI (Relative Strength Index) for XRP/USD is currently just slightly above the 50 level.
The XRP price has undergone a correction and is currently in the process of testing crucial resistance levels. A clearance of the $0.642 resistance zone could lead to a substantial increase in the price, while a failure might result in renewed downward pressure. Traders and investors should closely monitor the market and pay attention to key support and resistance levels to make informed decisions.
