XRP Price Shows Confluence Of Bearish Factors and Could Decline Again

2023-08-22 05:24:28

Ripple’s token price is showing bearish signs below $0.580 against the US Dollar. XRP price could start another decline if it trades below $0.480.

Ripple’s token price is struggling to recover above $0.550 and $0.580 against the US dollar.
The price is now trading below $0.56 and the 100 simple moving average (4 hours).
There is a major bearish trend line forming with resistance near $0.580 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair might start another decline if there is a break below $0.480.

Ripple’s Token Price Faces Uphill Task

After a major decline to $0.40, Ripple’s XRP started an upside correction against the US Dollar. The price recovered a few points above the $0.45 and $0.48 resistance levels, similar to Bitcoin and Ethereum.

The bulls pushed the price above the 50% Fib retracement level of the main decline from the $0.6654 swing high to the $0.3995 low. The price climbed above the $0.50 level. However, the bears are active near the $0.550 resistance zone.

XRP is now trading below $0.56 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.580 on the 4-hour chart of the XRP/USD pair.

Initial resistance on the upside is near the $0.550 zone. The next major resistance is near the $0.565 level or the 61.8% Fib retracement level of the main decline from the $0.6654 swing high to the $0.3995 low. The main resistance is now forming near the $0.580 zone and the trend line.

Source: XRPUSD on TradingView.com

A successful break above the $0.580 resistance level might send the price toward the $0.60 resistance or the 100 simple moving average (4 hours). Any more gains might call for a test of the $0.6650 resistance.

Another Drop in XRP?

If ripple fails to clear the $0.565 resistance zone, it could start another decline. Initial support on the downside is near the $0.500 zone.

The next major support is near $0.480. If there is a downside break and a close below the $0.480 level, XRP’s price could extend losses. In the stated case, the price could retest the $0.400 support zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.50, $0.480, and $0.40.

Major Resistance Levels – $0.550, $0.565, and $0.580.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.