XRP price dropped towards the $0.5550 level before the bulls stepped in. The price is now consolidating and it could target a fresh increase above $0.580.
- XRP price started a consolidation phase after a drop towards 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 feed from Kraken).
- The pair could attempt a recovery wave if it breaks the resistance zone of $0.580.
XRP price begins to consolidate
XRP price extended losses below the $0.580 level as Bitcoin and EthereumThe price even tested the $0.5550 zone. A low was formed at $0.5538 and the price recently started an upward correction.
There was a move above the $0.5580 and $0.5620 levels. The price spiked above the 50% Fibonacci retracement level of the downward move from the $0.60 high to $0.5538 low. However, the bears remained active and protected further upside above $0.5850.
The price is still trading below the $0.580 level and the 100 hourly simple moving average. On the upside, the price might find resistance near the $0.5720 level. There is also a key bearish trend line forming with resistance at $0.5720 on the hourly chart of the XRP/USD pair.
The first major resistance is located near the $0.5885 level. It is close to the 76.4% Fib retracement level of the downward move from the $0.60 high to $0.5538 low.
The next key resistance could be at $0.60. A clear move above the $0.60 resistance could send the price towards the $0.6050 resistance. The next major resistance is near the $0.6160 level. Any further gains could send the price towards the $0.6250 resistance or even $0.6320 in the near term.
Another decline?
If XRP fails to clear the $0.5720 resistance zone, it could start another decline. The initial support on the downside is near the $0.5640 level. The next major support is at $0.5550.
If there is a downside break and close below the $0.5550 level, the price could continue to decline towards the $0.5320 support in the near term. The next major support lies at $0.5120.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now losing momentum 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.
Main resistance levels: $0.5720 and $0.5885.
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