Analysis

Charted: Ripple (XRP) Accelerating Losses, Decline Isn’t Over Yet

Ripple started a major decline below the $ 0.5000 support zone against the US Dollar. XRP price even broke the $ 0.4500 support and it seems like there are chances of more losses.

  • Ripple started a steady decline below the $ 0.5000 and $ 0.4800 levels against the US dollar.
  • The price is now trading well below $ 0.4750 and the 100 simple moving average (4-hours).
  • There is a major declining channel forming with resistance near $ 0.5330 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to continue lower if there is a clear break below the $ 0.4350 level.

Ripple’s XRP Price is Gaining Bearish Momentum

Yesterday, we discussed the chances of a sharp decline in ripple’s XRP price below $ 0.4750. There was no recovery wave and the price started a sharp decline below the $ 0.4800 and $ 0.4750 support levels.

There was a break below the $ 0.4500 support and the price settled well below the 100 simple moving average (4-hours). A new monthly low is formed near $ 0.4352 and the price is currently consolidating losses. An initial resistance on the upside is near the $ 0.4650 level.

The first major resistance is near the $ 0.4720 level. It is close to the 50% Fib retracement level of the downward move from the $ 0.5944 high to $ 0.4352 swing low.

Ripple (XRP)

Source: XRPUSD on TradingView.com

The main resistance is now forming near the $ 0.5000 zone. There is also a major declining channel forming with resistance near $ 0.5330 on the 4-hours chart of the XRP/USD pair. If there is no recovery wave above $ 0.4650 or $ 0.4720, there is a risk of another decline.

The next major support is near the $ 0.4200 level. Any more losses could lead the price towards the $ 0.4000 support zone in the near term.

Recovery in XRP?

If ripple starts a decent recovery wave above the $ 0.4650 resistance, the bulls might attempt to take control. A clear break above the $ 0.4650 and $ 0.4720 levels could start a decent recovery.

To move into a positive zone, the price has to settle above the $ 0.5000 level. A close above $ 0.5000 will most likely pump the price towards the $ 0.5500 level.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is trying to recover from the oversold zone.

Major Support Levels – $ 0.4350, $ 0.4200 and $ 0.4000.

Major Resistance Levels – $ 0.4650, $ 0.4720 and $ 0.5000.

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