XRP price has started a downward correction from the $0.750 area. The price retested the $0.600 support zone and may attempt a new rally soon.
- XRP started a downward correction from the $0.750 resistance zone.
- The price is now trading below $0.650 and the 100 simple moving average (4-hours).
- A major downtrend line is forming with resistance near $0.6550 on the 4-hour chart of XRP/USD (data source from Kraken).
- The pair could further correct lower, but the bulls could remain active near $0.600.
XRP Price Falls Below $0.650
The price fell below the $0.720 and $0.700 support levels. The bears even pushed it below the $0.650 pivot level. However, the bulls were active near the $0.600 area. A low was formed near $0.5938 and the price is now attempting a further rise.
XRP is now trading below $0.650 and the 100 simple moving average (4-hours). There is also a major downtrend line forming with resistance near $0.6550 on the 4-hour chart of the XRP/USD pair.
On the upside, immediate resistance is near the $0.630 level or the 23.6% Fibonacci retracement level of the recent decline from the $0.7499 high to $0.5938 low. The first major resistance lies near the $0.640 area or the trendline.
Source: XRPUSD on TradingView.com
A close above the trendline could send the price towards the $0.672 resistance. It is near the 50% Fibonacci retracement level of the recent decline from the $0.7499 high to $0.5938 low. If the bulls remain in action above the $0.672 resistance level, there could be a rally towards the $0.750 resistance. Any further gains could send XRP towards the $0.788 resistance.
Are dips limited?
If XRP fails to break above the $0.640 resistance zone, it could continue to decline. Initial support on the downside is near the $0.620 area.
The next major support is at $0.600. If there is a downside breakout and close below the $0.600 level, XRP price could accelerate lower. In the indicated case, the price could retest the $0.540 support zone.
4-hour MACD – The MACD for XRP/USD is now losing momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Key support levels – $0.620, $0.600 and $0.540.
Major resistance levels – $0.630, $0.640 and $0.672.