Ripple’s price recently embarked on a downside correction after reaching the $0.5650 region against the US dollar. However, positive signs indicate a potential fresh increase in the near term. This article analyzes the current market situation and key support and resistance levels for XRP.
Ripple’s Downside Correction:
Ripple’s price began a downside correction from the $0.5650 zone against the US dollar. The price is trading below the $0.500 level and the 55 simple moving average (4 hours). However, a short-term rising channel is forming with resistance near $0.500 on the 4-hour chart of the XRP/USD pair, sourced from Kraken.
Potential Fresh Increase:
Despite the recent correction, there is optimism that the pair could initiate a fresh increase above the $0.500 resistance level. Like Bitcoin, Ripple’s price is consolidating near $0.488 against the US dollar. The XRP price needs to maintain support above the $0.4820 level to trigger this fresh increase.
Strong Increase in the Past Week:
The previous week, Ripple’s price witnessed a robust surge above the $0.520 resistance against the US dollar. The XRP/USD pair surpassed the $0.545 resistance, entering a positive zone. The price continued its upward trajectory and climbed towards the $0.550 resistance, forming a high of around $0.5650. However, a subsequent correction pushed the price lower.
Current Price Movement:
Following the correction, the price declined below the $0.525 and $0.500 levels, testing the $0.4550 zone. Eventually, a low formed near $0.4550, and the price rebounded. It broke the $0.465 resistance zone and moved above the 23.6% Fibonacci retracement level of the downward move from the $0.5650 swing high to the $0.4550 low.
Key Levels and Possible Scenarios:
Currently, the XRP price is trading below $0.500 and the 55 simple moving average (4 hours). Resistance near $0.500 persists, with a short-term rising channel taking shape on the 4-hour chart of the XRP/USD pair. The next significant resistance level lies near $0.510 or the 50% Fibonacci retracement level of the recent downward move.
If the price surpasses the $0.510 resistance, a substantial increase could be triggered. In this scenario, the price might surpass the $0.540 resistance, potentially leading to further gains toward the $0.5650 resistance.
Support levels on the downside include $0.4820 and $0.475. Further losses may drive the price toward the $0.4550 level, and if breached, the price could even test $0.420.
Technical Indicators:
The MACD for XRP/USD on the 4-hour chart is gaining momentum in the bullish zone, suggesting a positive outlook. Additionally, the RSI (Relative Strength Index) for XRP/USD is above the 50 level, reinforcing the potential for upward movement.
Conclusion:
Despite the recent downside correction, Ripple’s price retains the potential for a fresh increase above the $0.500 resistance level. Traders should closely monitor the key support and resistance levels mentioned above to gauge future price movement. Overall, XRP seems poised for a potential upside breakout in the near term.
Source: https://bitcoinworld.co.in/ripple-price-analysis-xrp-poised-for-potential-upside-break-above-0-500-resistance/