In the wake of a recent downtrend, Ripple’s XRP token is grappling to recover key resistance levels against the US dollar. Significantly, the cryptocurrency is stuck below the pivotal marks of $0.510 and $0.525. Moreover, it is currently trading below the $0.520 level and the 100 simple moving average (4-hour chart). A major bearish trend line with resistance near $0.5020 has been spotted, highlighting the uphill battle XRP faces.
Just a few days ago, Ripple’s XRP was in a more favorable position, experiencing resistance only at the $0.550 mark. However, it steadily declined, plunging below the $0.532 and $0.525 support levels. It even had a brief, unsettling dip below $0.500. Similar to what we’re witnessing in Bitcoin and Ethereum, a recovery wave is attempting to lift the price from a low near $0.4863.
Consequently, the token is trading near the 23.6% Fib retracement level of its recent decline, which started from a swing high at $0.5490 and descended to a low of $0.4863. Initial resistance on the upside is uncomfortably close at $0.502. Next in line is the $0.518 mark, equivalent to the 50% Fib retracement level of the recent slump.
Hence, the crucial battleground is shaping up around the $0.525 resistance level. If XRP breaks through, we could see a bullish wave targeting the next resistances at $0.532 and $0.550.
However, if the asset fails to clear the $0.525 resistance, another decline could be on the horizon as the initial downside support hovers near the $0.490 area, followed by a more solid floor at $0.485. Significantly, a close below the $0.485 could extend losses, possibly plunging the token towards the $0.450 support zone.
Additionally, technical indicators echo this sentiment of uncertainty. The 4-hour MACD for XRP/USD is losing steam in the bearish zone, and the 4-hour Relative Strength Index (RSI) remains below the 50 level, indicating lackluster momentum.
In summary, Ripple’s XRP is at a critical juncture. Major resistance and support levels close to the token’s short-term future hang in the balance. Investors and traders must closely monitor these key levels to gauge the next possible direction.
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