XRP price is correcting gains from the USD 0.585 resistance against the US dollar. The bulls are active around $0.550 and could initiate a new rally soon.
- XRP started a strong rise above the USD 0.55 resistance.
- The price is now trading above USD 0.525 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.5520 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair could correct further lower, but the bulls could remain active around $0.5320.
XRP price holds steady
After forming a base above the USD 0.478 level, XRP started a fresh rise. The recent pump in Bitcoin and Ethereum has also dragged XRP higher. The price gained speed after breaking the USD 0.525 resistance.
There was a move above the USD 0.550 and USD 0.565 resistance levels. Finally, it traded to a new multi-week high at $0.5859. Recently, there was a downward correction below the $0.575 level. The price fell below the 23.6% Fib retracement level of the upward move from the $0.4778 swing low to the $0.5859 high.
The price is now trading above USD 0.525 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support near $0.5520 on the 4-hour chart of the XRP/USD pair.
Source: XRPUSD on TradingView.com
On the upside, immediate resistance is around the $0.563 level. A close above the USD 0.563 level could send the price towards the USD 0.585 resistance. If the bulls continue to act above the USD 0.585 resistance level, a drift towards the USD 0.620 resistance level could occur. Any further gains could send XRP towards the USD 0.645 resistance.
Are dips limited?
If XRP fails to break the USD 0.563 resistance zone, it could continue to decline. The initial downside support is near the $0.5520 zone and the trendline.
The next major support is at $0.532 or the 50% Fib retracement level of the upward move from the $0.4778 swing low to the $0.5859 high. If there is a downside break and a close below the USD 0.532 level, the price could accelerate lower. In the said case, the price could retest the USD 0.505 support zone.
Technical indicators
4-hour MACD – The MACD for XRP/USD is now losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major support levels – $0.552, $0.532 and $0.505.
Major resistance levels – $0.563, $0.585 and $0.620.
