Charted: Ripple (XRP) Accelerating Losses, Decline Isn’t Over Yet
Ripple started a major decline below the $0.5000 support zone against the US Dollar. XRP price even broke the $0.4500 support and it seems like there are chances of more losses.
- Ripple started a steady decline below the $0.5000 and $0.4800 levels against the US dollar.
- The price is now trading well below $0.4750 and the 100 simple moving average (4-hours).
- There is a major declining channel forming with resistance near $0.5330 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to continue lower if there is a clear break below the $0.4350 level.
Ripple’s XRP Price is Gaining Bearish Momentum
Yesterday, we discussed the chances of a sharp decline in ripple’s XRP price below $0.4750. There was no recovery wave and the price started a sharp decline below the $0.4800 and $0.4750 support levels.
There was a break below the $0.4500 support and the price settled well below the 100 simple moving average (4-hours). A new monthly low is formed near $0.4352 and the price is currently consolidating losses. An initial resistance on the upside is near the $0.4650 level.
The first major resistance is near the $0.4720 level. It is close to the 50% Fib retracement level of the downward move from the $0.5944 high to $0.4352 swing low.
Source: XRPUSD on TradingView.com
The main resistance is now forming near the $0.5000 zone. There is also a major declining channel forming with resistance near $0.5330 on the 4-hours chart of the XRP/USD pair. If there is no recovery wave above $0.4650 or $0.4720, there is a risk of another decline.
The next major support is near the $0.4200 level. Any more losses could lead the price towards the $0.4000 support zone in the near term.
Recovery in XRP?
If ripple starts a decent recovery wave above the $0.4650 resistance, the bulls might attempt to take control. A clear break above the $0.4650 and $0.4720 levels could start a decent recovery.
To move into a positive zone, the price has to settle above the $0.5000 level. A close above $0.5000 will most likely pump the price towards the $0.5500 level.
4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is trying to recover from the oversold zone.
Major Support Levels – $0.4350, $0.4200 and $0.4000.
Major Resistance Levels – $0.4650, $0.4720 and $0.5000.