XRP Price Correction Indicates Potential for Fresh Rally
XRP price has started a downside correction from the $0.750 zone, leading to a retest of the $0.600 support zone. However, there are indications that the price may soon attempt a fresh rally.
XRP started a downside correction from the $0.750 resistance zone and is currently trading below $0.650 and the 100 simple moving average (4 hours). Additionally, there is a major bearish trend line forming with resistance near $0.6550 on the 4-hour chart of the XRP/USD pair (data source from Kraken). While the pair might correct further lower, the bulls could remain active near $0.600.
After rallying above the $0.720 resistance, XRP faced resistance at the $0.750 barrier and recently started a downside correction. The price struggled to clear the $0.750 barrier and struggled to clear the $0.750 barrier and recently started a downside correction, similar to Bitcoin and Ethereum.
The price declined below the $0.720 and $0.700 support levels, with the bears even pushing it below the $0.650 pivot level. However, the bulls were active near the $0.600 zone, leading to a low being formed near $0.5938 and the price is now attempting a fresh increase.
XRP is now trading below $0.650 and the 100 simple moving average (4 hours). There is also a major bearish trend 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% Fib retracement level of the recent decline from the $0.7499 swing high to the $0.5938 low. The first major resistance is near the $0.640 zone or the trend line.
A close above the trend line could send the price toward the $0.672 resistance, which is near the 50% Fib retracement level of the recent decline from the $0.7499 swing high to the $0.5938 low. If the bulls remain in action above the $0.672 resistance level, there could be a rally toward the $0.750 resistance, with potential for further gains toward the $0.788 resistance.
If XRP fails to clear the $0.640 resistance zone, it could continue to move down, with initial support on the downside near the $0.620 zone. The next major support is at $0.600, and a downside break and close below the $0.600 level could lead to an acceleration in XRP price lower, potentially retesting the $0.540 support zone.
In terms of technical indicators, the 4-Hour MACD for XRP/USD is now losing pace in the bullish zone, while the 4-Hour RSI (Relative Strength Index) for XRP/USD is now below the 50 level.
Overall, the major support levels for XRP are at $0.620, $0.600, and $0.540, with major resistance levels at $0.630, $0.640, and $0.672. Source: XRPUSD on TradingView.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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