XRP price dropped to $0.5550 before the bulls showed up. The price is now consolidating and could be looking for a fresh rally above $0.580.
- XRP price has entered a consolidation phase after falling towards the $0.5550 zone.
- The price is currently trading below $0.580 and the 100-hour simple moving average.
- There is a key bearish trend line forming with resistance at $0.5720 on the hourly chart of XRP/USD (data source: Kraken).
- The pair may try to recover if it breaks the $0.580 resistance zone.
XRP Price Begins to Consolidate
XRP price continued to fall below the $0.580 level, like Bitcoin and Ethereum. The price even tested the $0.5550 zone. The minimum was formed at $0.5538, and the price recently began an upward correction.
There was a move above the $0.5580 and $0.5620 levels. The price jumped above the 50% Fibonacci retracement level of the downward move from the swing high of $0.60 to the low of $0.5538. However, the bears remained active and protected more upside above $0.5850.
The price is still trading below $0.580 and the 100-hour simple moving average. On the downside, the price may face resistance near $0.5720. There is also a key bearish trend line forming with resistance at $0.5720 on the hourly chart of the XRP/USD pair.
The first major resistance is found around the $0.5885 level. This is close to the 76.4% Fibonacci retracement level of the downward move from the $0.60 swing high to the $0.5538 low.
The next key resistance could be $0.60. A clear move above the $0.60 resistance could send the price towards the $0.6050 resistance. The next major resistance is near the $0.6160 level. Any further gains could send the price towards the $0.6250 resistance or even $0.6320 resistance in the near term.
Another recession?
If XRP fails to break the $0.5720 resistance zone, it could lead to a fresh decline. Initial support on the downside is near $0.5640. The next major support is at $0.5550.
If there is a break down and a close below $0.5550, the price could continue to decline towards the $0.5320 support in the near term. The next major support is at $0.5120.
Technical indicators
Hourly MACD – The MACD for XRP/USD is currently losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently below the 50 level.
The main support levels are $0.5640 and $0.5550.
The main resistance levels are $0.5720 and $0.5885.
