XRP Price Dips To Support, Can It Bounce Back And Restart Increase?

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As a seasoned crypto investor, I’ve seen my fair share of market fluctuations and price movements in XRP. The recent dip in XRP price from the resistance zone at $0.5320 to the current testing of the support at $0.5180 is not an unfamiliar sight.

I’ve noticed that Ripple‘s XRP price has initiated a new downward trend after hitting the resistance at $0.5320. At present, it is being put to the test at the support level of $0.5180, and there’s a possibility that it may even encounter the additional support at $0.5120.

    XRP failed near $0.5320 and started a downside correction.
    The price is now trading below $0.5250 and the 100-hourly Simple Moving Average.
    There is a connecting bearish trend line forming with resistance near $0.5250 on the hourly chart of the XRP/USD pair (data source from Kraken).
    The pair could dip further if it stays below the $0.5250 resistance zone.

XRP Price Dips Again

The price of XRP surpassed the $0.5265 mark, just as Bitcoin and Ethereum did, and reached new heights above $0.5300 momentarily before facing resistance from selling pressure.

At a price of $0.5325, a peak was reached and a decline began. The value dipped below the $0.5250 mark. It fell beneath the 50% Fibonacci retracement threshold of the bullish trend that started at $0.5080 and peaked at $0.5325.

The price currently hovers below the $0.5250 mark and its 100-hour moving average, yet bulls remain vigilant around the 61.8% Fibonacci retracement level, which is located near $0.5325 in the ongoing uptrend from the $0.5080 swing low.

The price of XRP/USD is encountering resistance around the $0.5250 mark. An hourly chart reveals a bearish trend line forming with resistance at this level. The first notable resistance lies at $0.5300, followed by $0.5320. Breaking above $0.5320 could potentially push the price upward. Further resistance can be found near $0.5450.

As an analyst, I would interpret a close above the $0.5450 resistance as a potential sign of continued upward momentum. This could lead to a gradual rise in price, pushing it toward the next resistance level at $0.5520. If the gains persist, we might even see the price testing the $0.5650 resistance.

More Losses?

If XRP is unable to surpass the $0.5250 resistance point, it may proceed in descending direction. A noteworthy support lies at approximately $0.5165.

If we reach $0.5120 as the next significant support, a breach below this point with a closing price may trigger further declines. In such an event, the price could drop down to the nearby support at $0.5020.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.5165 and $0.5120.

Major Resistance Levels – $0.5250 and $0.5320.

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2024-06-07 07:16