Understanding Recent Ripple Price Actions: In-depth Analysis
The token of Ripple (XRP) is showing signs of consolidation above the $0.620 against the US Dollar. If there’s a clear break over the $0.650 barrier, XRP might experience a decent surge.
Key Observations
The following are notable markers on Ripple’s recent price actions:
| Observations | Implications |
|---|---|
| Ripple, after moving lower from its $0.6650 resistance with US dollar, is presently trading below $0.65. | The price slump indicates bearish patterns in the trading dynamics of Ripple. |
| There’s a key bearish trend forming, with resistance manifested near $0.628 from the 4-hour chart of the XRP/USD pair according to data from Kraken. | This trend underpins a difficult terrain for Ripple token’s ascent in the short run. |
| Ripple’s token might continue to decline if there’s no clear move above the $0.63 and $0.65 thresholds. | If Ripple fails to clear such resistances, it points to an increased likelihood of further price decline. |
Ripple’s Downward Price Trend
Despite a recovery wave, Ripple’s XRP faced resistance in crossing the $0.6650 threshold against the US Dollar. A high point was established near $0.6654 prior to a new decline wave, similar to Bitcoin and Ethereum’s recent performance.
A subsequent drop below $0.650 pivot level occurred. Ripple’s price plummeted below the 50% Fibonacci retracement level of the upward trajectory from the $0.5926 low point to the $0.6654 high. Furthermore, the price also declined beneath the $0.635 support zone.
Currently, XRP sits below $0.65, and the 100 moving averages (4 hours). A key bearish trend line is brewing, with resistance around the $0.628, as depicted in the 4-hour chart of XRP/USD pair.
Resistance on the green side lies around the $0.628 region, and along the winding-down trend line. The next significant hurdle is projected near the $0.650 spot, converging with the 100 moving averages (4 hours). The main resistance is now hovering around the $0.6650 zone.
Source: XRPUSD on TradingView.com
Overcoming the $0.6650 resistance might catapult Ripple’s price towards the $0.70 resistance mark. Any further gains could lead to a test of the $0.720 upper boundary.
Possible Deeper Losses for Ripple?
If Ripple can’t clear the $0.650 resistance area, another drop is likely. The initial support on the downside is projected near the $0.620 zone emerging from the 61.8% Fibonacci retracement level of the positive swing from the $0.5926 low to the $0.6654 high.
Major support at $0.60 stands next. A breakdown and a close below this level can exacerbate Ripple’s losses. In such an event, Ripple could retest the $0.585 support area.
Technical Indicators
Looking at certain technical indicators gives insight into the current and potential future scenarios:
- 4-Hours MACD – The MACD for XRP/USD is gradually losing momentum in the bearish zone.
- 4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently below the critical level of 50.
Important Levels to Watch
Focus on these levels might help when planning investments with Ripple:
- Major Support Levels – $0.62, $0.60, and $0.585.
- Major Resistance Levels – $0.628, $0.650, and $0.665.