Charted: Ripple (XRP) Breakdown Looks Real, Why It Could Retest $0.45

Ripple failed to clear the $0.6150 resistance and broke a major support at $0.5740 against the US Dollar, similar to bitcoin and ETH. XRP price is likely to continue lower towards $0.5100 or even $0.4500.

  • Ripple started a major decline after it broke the key $0.5740 support zone against the US dollar.
  • The price is now trading well below the $0.5740 zone and the 100 simple moving average (4-hours).
  • There was a break below yesterday’s highlighted crucial contracting triangle with support at $0.5880 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair could retest $0.5740 before it extends its decline towards $0.5000.

Ripple’s XRP Price is Gaining Bearish Momentum

After a couple of failed attempts near $0.6200 and $0.6150, ripple’s XRP price started a strong decline. Bitcoin, ETH, BCH, ADA, LINK and many other altcoins declined heavily.

XRP also followed a similar pattern and it broke a couple of important supports near $0.5880 and $0.5740. There was a clear break below the 50% Fib retracement level of the key upward move from the $0.4548 swing low to $0.6919 high.

More importantly, there was a break below yesterday’s highlighted crucial contracting triangle with support at $0.5880 on the 4-hours chart of the XRP/USD pair. The price is now trading well below the $0.5740 zone and the 100 simple moving average (4-hours).

Ripple’s XRP Price

Source: XRPUSD on TradingView.com

It is testing the $0.5450 support level. It is close to the 61.8% Fib retracement level of the key upward move from the $0.4548 swing low to $0.6919 high.

If there is a clear break below the $0.5450 support level, the price could continue to move down. The next major support is near the $0.5000 level, below which the bears might aim a test of the $0.4500 support.

Upsides Limited in XRP?

If ripple starts a corrective increase above $0.5600, it could face hurdles. The first major resistance is near the $0.5740 level (the recent breakdown zone).

The next major resistance is near the $0.6000 level or the 100 simple moving average (4-hours). As long as the price is below the $0.5740 resistance, it remains at a risk of more losses in the near term.

Technical Indicators

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 currently well below the 40 level.

Major Support Levels – $0.5450, $0.5200 and $0.5000.

Major Resistance Levels – $0.5740, $0.5880 and $0.6000.

This post was originally published on www.newsbtc.com