The XRP price started a downward correction and tested USD 0.572. The price is now rising and could gain bullish momentum if it clears $0.642.
- XRP started a downward correction below USD 0.650 and USD 0.620.
- The price is now trading below $0.640 and the 100 simple moving average (4 hours).
- There was a break above a major bearish trendline with resistance near $0.608 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair will start a new rally if it breaks the $0.642 resistance zone.
XRP price provides important support
After being rejected near the $0.740 zone, XRP started a new decline. There was a move below the USD 0.70 and USD 0.650 support levels. The price even dipped below the USD 0.60 support, underperforming Bitcoin and Ethereum.
Ultimately, the bulls took a stand around $0.572. A low was formed near USD 0.572 and the price is now trying to make a new rise. There was a move above the USD 0.600 resistance. There was a break above a major bearish trendline with resistance near $0.608 on the 4-hour chart of the XRP/USD pair.
The price is now testing the 23.6% Fib retracement level of the downward move from the $0.7499 swing high to the $0.5723 low. On the upside, immediate resistance is around the $0.615 level.
The first major resistance is near the $0.642 zone or the 100 simple moving average (4 hours). It is close to the 50% Fib retracement level of the downward move from the $0.7499 swing high to the $0.5723 low. A close above the $0.642 resistance zone could lead to a steady rise.
Source: XRPUSD on TradingView.com
The next major resistance is near $0.682. If the bulls continue their action above the USD 0.682 resistance level, a rally towards the USD 0.720 resistance could take place. Any further gains could send XRP towards the USD 0.750 resistance.
Another drop?
If XRP fails to break the USD 0.642 resistance zone, it could trigger a fresh decline. The initial downside support is near the $0.588 zone.
The next major support is at USD 0.572. If there is a downside break and a close below the USD 0.572 level, the XRP price may accelerate lower. In the said case, the price could retest the USD 0.540 support zone.
Technical indicators
4-hour MACD – The MACD for XRP/USD is now gaining speed in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now just above the 50 level.
Major support levels – $0.588, $0.572 and $0.540.
Major resistance levels – $0.615, $0.642 and $0.682.
