XRP Faces Selloff Threat

XRP Price Faces Downside Pressure, May Test Lower Levels

The price of XRP has entered a corrective phase, trading below the $1.1840 mark and showing bearish signals that could lead to further declines below $1.10.

The cryptocurrency’s downward correction began after it failed to sustain its position above the $1.1750 zone. XRP is currently trading below $1.150 and its 100-hour Simple Moving Average. A bearish trend line, which had provided support at $1.1620 on the hourly chart for the XRP/USD pair, has also been breached. Data from Kraken indicates that if XRP remains below $1.150, further downward movement is likely.

XRP Price Dips Once Again

XRP struggled to maintain its footing above the $1.1620 level, initiating a fresh decline that mirrored movements seen in Bitcoin and Ethereum. The price fell below both the $1.160 and $1.1550 thresholds. The hourly chart for the XRP/USD pair, sourced from Kraken, shows a break below a bullish trend line that had been established at $1.1620.

Furthermore, XRP’s price dipped below the 38.2% Fibonacci retracement level of its prior upward move, which spanned from a swing low of $1.050 to a high of $1.1863. The cryptocurrency is now trading below $1.160 and its 100-hour Simple Moving Average.

Should XRP attempt an upward recovery, it may encounter resistance around the $1.1350 level. The first significant resistance is situated near $1.1420; a sustained move above this point could propel the price to test the $1.150 level. A decisive break above the $1.150 resistance could then push XRP towards the $1.1580 resistance. Any further gains might see the price target the $1.1650 resistance. The next major obstacle for bullish sentiment is anticipated to be around the $1.1840 mark.

More Downside Potential?

If XRP is unable to overcome the $1.150 resistance zone, it could initiate another wave of decline. Initial support on the downside is observed near the $1.1020 level, which also corresponds to the 61.8% Fibonacci retracement level of the move from the $1.050 swing low to the $1.1863 high. The subsequent major support is located around the $1.1072 level. A breakdown below $1.1072, accompanied by a closing price below this level, could lead to further declines towards $1.1020. The next significant support is positioned near the $1.10 zone, below which XRP could continue its descent towards $1.080. Any additional losses might necessitate a retest of the $1.050 level.

Technical Indicators

The hourly MACD (Moving Average Convergence Divergence) for XRP/USD is currently gaining momentum within the bearish territory. The hourly RSI (Relative Strength Index) for XRP/USD has fallen below the 50 level.

Major Support Levels: $1.1020 and $1.080
Major Resistance Levels: $1.1500 and $1.1840