XRP is experiencing a notable downward correction after peaking near the $0.6480 resistance. Currently, the cryptocurrency is testing the $0.550 support level and shows potential for a fresh upward movement. Initially, the price corrected below the $0.620 and $0.600 marks, and it is now trading beneath $0.600, as well as the 100-hourly Simple Moving Average.
A significant bearish trend line with resistance at $0.5750 is forming on the hourly chart of the XRP/USD pair. This development suggests that the pair could potentially trigger a fresh rally if it successfully clears the $0.580 resistance zone.
XRP encountered difficulty in extending gains beyond the $0.6450 and $0.650 levels. Similar to major cryptocurrencies like Ethereum and Bitcoin, it faced a downside correction below the $0.600 threshold. It fell under the $0.5850 and $0.580 support levels, dipping below the 50% Fibonacci retracement level of the upward swing from the $0.4925 low to the $0.6475 high.
Currently, the bulls are focusing on the $0.5500 support. This level coincides with the 61.8% Fibonacci retracement level of the previous upward wave from $0.4925 to $0.6475. Meanwhile, XRP is trading below $0.600 and the critical 100-hourly Simple Moving Average.
In terms of resistance, the price is facing obstacles around the $0.570 level. The initial major resistance stands at $0.5750, corresponding with the key bearish trend line resistance on the hourly chart. If XRP breaks this barrier, it may further advance towards the $0.580 mark. A clear breach of the $0.580 resistance might propel the price toward the $0.5950 resistance, with $0.600 presenting an additional challenge. Continued momentum could even push XRP prices to revisit the $0.620 or $0.650 zones.
However, if XRP fails to overcome the $0.580 resistance, the cryptocurrency might continue its downward trajectory. The first support level in this scenario lies near $0.5520, closely followed by the crucial $0.550 level. Should there be a break and close below $0.550, a further decline toward the $0.5320 support level seems likely, with the next major support located at $0.5250.
Technical indicators reveal that the hourly MACD for XRP/USD is gaining momentum in the bearish zone, while the hourly Relative Strength Index (RSI) is below the 50 mark. Major support levels are positioned at $0.5550 and $0.5500, and major resistance levels are at $0.5750 and $0.5800.
