Charted: Ripple (XRP) Accelerating Losses, Decline Isn’t Over Yet

Aayush Jindal

1 year ago

2 mins read

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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.

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 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.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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