In the recent days, XRP price has experienced a downtrend, falling below the critical support zone of $0.5120. Despite testing the $0.5080 zone and showing signs of a recovery towards $0.5350, XRP is struggling to surpass the $0.5250 resistance level. Trading below $0.5150 and the 100-hourly Simple Moving Average, XRP is facing significant challenges in initiating a bullish momentum. A key bearish trend line is also forming with resistance around $0.5180 on the hourly chart of the XRP/USD pair as per data from Kraken. The price may continue to decline if it fails to break above $0.5250.
Short-Term Bearish Trend
Similar to Bitcoin and Ethereum, XRP has been stuck in a short-term bearish zone, with the price struggling to recover and falling below the $0.5220 support zone. Even breaching the $0.5120 support level, XRP hit a low at $0.5080 before attempting a fresh recovery wave. Although there was a slight uptick above the $0.5120 level, the price is still struggling to exceed $0.520 and the 100-hourly SMA. Resistance is prominent near the $0.5180 level, as indicated by the bearish trend line on the XRP/USD hourly chart. The first major resistance lies at $0.5250, followed by $0.5320 and potentially $0.5450. Conversely, a failure to clear the $0.5180 zone could result in further downside movement, with initial support at $0.5120 and $0.5080.
Potential Scenarios
If XRP manages to break above the key resistance levels, a steady increase towards $0.5450 and even $0.5650 could be expected. However, if the price fails to overcome the resistance at $0.5180, a downward trend might continue. A breach below the $0.5080 support level could accelerate the decline towards $0.50 in the near term. The technical indicators show that the hourly MACD for XRP/USD is losing pace in the bearish zone, while the hourly RSI is below the 50 level, indicating a bearish sentiment in the market.
The current analysis of XRP price movement suggests a challenging environment for bulls to push the price higher. With key resistance levels looming above and bearish trends taking hold, XRP could face further downside pressure if it fails to break above the critical levels. Traders and investors should closely monitor the price action and key support/resistance levels to make informed decisions in the volatile cryptocurrency market.