Key Highlights
- Ripple price failed to recover and extended its decline towards the $0.50 level against the US dollar.
- There is a major bearish trend line forming with resistance near $0.5300 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair must break the $0.53 resistance and move higher to avoid more losses in the near term.
Ripple price was not able to recover yesterday against the US Dollar and Bitcoin. XRP/USD crashed and almost tested the $0.50 support zone.
Ripple Price Upside Hurdle
There was no major upside move above the $0.5600 level in Ripple price against the US Dollar. The price failed to recover and faced sellers around $0.5600. As a result, there was a downside move and the price traded below the $0.5500 and $0.5200 support levels. It almost traded close to the $0.5000 level and formed a low around the $0.5035 level.
A low was formed and the price started an upside correction above the $0.5100 level. It tested the 23.6% Fib retracement level of the last drop from the $0.5990 swing high to $0.5035 low. However, the current upside move is protected by the $0.5300 resistance. There is also a major bearish trend line forming with resistance near $0.5300 on the hourly chart of the XRP/USD pair. The pair may rise in the near term above $0.5300, but it could face other hurdles. The 50% Fib retracement level of the last drop from the $0.5990 swing high to $0.5035 low is sitting around the $0.5500 level to act as a hurdle for buyers.
Looking at the chart, the price may struggle to move above the $0.5500 level, which could result in a downside push. In the mentioned scenario, there is a risk of a bearish break below the $0.5000 level.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is slightly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is still below the 50 level.
Major Support Level – $0.5000
Major Resistance Level – $0.5500