XRP is currently grappling with the $0.5550 resistance, struggling to break through this critical point. To mount a fresh rally in the near term, it is essential for XRP to remain above the $0.5250 support zone.
The cryptocurrency is presently consolidating above the $0.5320 mark but finds itself trading below $0.5500 and the 100-hourly Simple Moving Average. A significant development occurred as there was a break below a connecting bullish trend line with support at $0.5500 on the hourly chart of the XRP/USD pair.
Recently, XRP showed some stability above the $0.5320 support zone and managed to climb past the $0.550 level. However, it encountered strong selling pressure near the $0.5600 resistance zone, preventing further gains. After peaking at $0.5600, the price began to decline, following a pattern similar to Bitcoin and Ethereum, dropping below the $0.5550 and $0.550 levels. This decline resulted in a break below the previously mentioned bullish trend line.
In its downward trajectory, XRP fell below the 50% Fibonacci retracement level of the recent upswing from a $0.5375 low to a $0.5600 high. Currently, the price is trading below $0.5460 and the 100-hourly Simple Moving Average, with bulls striving to defend the 76.4% Fibonacci retracement level of the same upward move.
On the upside, XRP faces immediate resistance near the $0.5460 level, followed by a more significant hurdle at $0.5500. A decisive move above the $0.5550 resistance could propel the price towards the $0.5600 mark, potentially extending gains up to $0.5800 or even $0.5880. The next major resistance level might be located at $0.6000.
Conversely, if XRP fails to surmount the $0.5500 resistance zone, it risks another decline. Initial support on the downside is found near $0.5420, with major support around $0.5365. A break and close below this level could lead to further decline, targeting the $0.5320 support in the near term, and potentially testing the critical $0.5250 zone.
Technical indicators reflect the current market sentiment. The hourly MACD for XRP/USD is losing momentum within the bullish zone, while the hourly RSI (Relative Strength Index) is now below the 50 level, indicating weakened bullish momentum.
Key support levels to watch are $0.5420 and $0.5365, with major resistance levels at $0.5500 and $0.5550.