XRP Price Weakness Persists With Bears Eyeing A New Leg Lower

Overview

XRP has experienced a continued decline, trading below $1.550, and is now attempting a recovery. However, it faces significant resistance levels that may hinder its upward movement. The broader market sentiment reflects similar bearish trends seen in other cryptocurrencies such as Bitcoin and Ethereum.

Price Movement and Resistance Levels

XRP’s price has extended its losses, trading below the $1.550 mark. Initially, there was a recovery attempt from the $1.50 zone, but the price struggles to maintain momentum as it remains below $1.620 and the 100-hourly Simple Moving Average. A key bearish trend line is forming, with resistance noted at $1.6150 on the hourly chart of the XRP/USD pair.

The inability to hold above the $1.650 level has led to further declines in XRP’s price. The cryptocurrency dropped below both the $1.620 and $1.60 thresholds, entering a short-term bearish zone. A notable drop occurred, with the price even dipping below $1.520, ultimately reaching a low of $1.50. Following this, a recovery attempt saw the price rise above the $1.5750 level, surpassing the 23.6% Fibonacci retracement level of the downward move from the swing high to the low.

Despite these attempts, XRP continues to trade below the critical resistance levels of $1.620 and $1.650. If the price can break through the $1.650 resistance, it may have the potential to rise towards $1.720, which corresponds to the 50% Fibonacci retracement level. Further upward movement would encounter resistance near $1.750, and a clear break above this level might push the price toward $1.780 and beyond.

Potential for Further Decline

Should XRP fail to overcome the $1.650 resistance zone, another drop may be on the horizon. Initial support is seen near the $1.5760 level, with significant support at $1.550. A downside break and a close below $1.550 could lead to further declines, potentially pushing the price toward $1.5250. The critical support level below this is at $1.50, with further declines possible down to $1.4650.

Technical Indicators

The hourly MACD for XRP/USD is currently losing momentum in the bearish zone, indicating a potential weakening of the downward trend. The hourly Relative Strength Index (RSI) is also positioned below the 50 level, suggesting that the selling pressure remains intact.

Major Support Levels

• $1.5760
• $1.550

Major Resistance Levels

• $1.6150
• $1.650

From Author

The current market dynamics for XRP indicate a challenging environment for bulls attempting to regain control. The persistent resistance levels and bearish indicators suggest that traders should remain cautious. Monitoring the price movements closely will be essential to understanding potential shifts in market sentiment.

Impact on the Crypto Market

• XRP’s price decline reflects broader bearish trends affecting major cryptocurrencies.
• Resistance levels at $1.650 and $1.6150 may dictate short-term trading strategies for investors.
• The potential for further declines could lead to increased volatility in the market.
• The failure to recover above critical resistance levels may discourage bullish sentiment, impacting overall market confidence.
• Support levels at $1.550 and $1.5760 will be crucial for determining the next steps for XRP and possibly influencing market trends for other cryptocurrencies.