Ripple’s XRP token price is currently facing bearish signs as it struggles to recover above $0.540 and $0.550 against the US dollar. Despite starting a recovery wave after a sharp decline, the price is now trading below $0.550 and the 100 simple moving average (4 hours).
There is a major bearish trend line forming with resistance near $0.540 on the 4-hour chart of the XRP/USD pair. This indicates that if the price fails to break above $0.500, there might be another decline in store.
Recovery Wave
After experiencing a sharp decline to $0.40, Ripple’s XRP initiated a recovery wave against the US dollar. The price managed to surpass the $0.48 and $0.50 resistance levels, similar to what Bitcoin and Ethereum were doing at the time. It even exceeded the $0.520 resistance and reached a 50% Fib retracement level of the key drop from the $0.6655 swing high to the $0.3995 low.
However, the bulls are currently facing a challenging task near $0.550, stimulating the potential for further decline.
Resistance and Support Levels
On the upside, initial resistance is observed near the $0.540 zone, which is also the location of the bearish trendline. The following significant resistance lies around $0.550 or the 61.8% Fib retracement level, originating from the $0.6655 swing high to the $0.3995 low. If the price successfully breaks above $0.550, it may surge towards the $0.60 resistance. Further gains might even push for a test of the $0.625 resistance level.
However, if Ripple fails to clear the $0.550 resistance zone, it could lead to another decline. In that scenario, initial support on the downside is found near the $0.505 zone, followed by a major support level at $0.500. If the price breaks below $0.500 and closes below it, XRP could experience more losses, potentially retesting the $0.435 support zone.
The 4-hour MACD (Moving Average Convergence Divergence) for XRP/USD suggests that the MACD is losing pace in the bullish zone. On the other hand, the 4-hours RSI (Relative Strength Index) for XRP/USD is currently above the 50 level.
Ripple’s XRP token price is exhibiting bearish signs below $0.550 against the US dollar. Despite a recovery wave, the price faces significant resistance at $0.540 and $0.550. If it fails to break above these levels, another decline may be anticipated. Conversely, breaching the resistance zone could open up opportunities for further growth. Traders and investors should pay close attention to key support and resistance levels for potential trading strategies.