XRP Faces Continued Downside Risks

XRP Price Faces Downside Pressure, Potential for Further Decline Below $1.080

XRP has entered a period of correction, trading below the $1.150 mark and showing bearish signals that could lead to further declines, potentially testing the $1.080 level.

XRP Price Turns Red

The cryptocurrency struggled to maintain its position above the $1.1550 zone, initiating a downward correction that mirrors movements seen in Bitcoin and Ethereum. XRP’s price has fallen below key levels, including $1.150 and $1.1420, and has even dipped below the 50% Fibonacci retracement level of its recent upward move from a swing low of $1.050 to a high of $1.1862.

Despite the bearish trend, bulls are currently defending the $1.10 support area. However, a bearish trend line has formed on the hourly chart of the XRP/USD pair, with resistance identified at $1.120. The price is currently trading below $1.1350 and its 100-hourly Simple Moving Average, suggesting continued downward pressure.

Should XRP attempt a recovery, it may encounter resistance near the $1.120 level. The first significant resistance barrier lies around $1.1350. A decisive break above this level could propel the price towards $1.1420, and a sustained move beyond that might target the $1.1550 resistance. Further gains could then aim for the $1.1650 resistance, with the next major hurdle for buyers anticipated near $1.1840.

Downside Continuation?

Conversely, if XRP fails to overcome the $1.1350 resistance zone, a fresh decline could ensue. Initial support is observed around the $1.10 level. The next critical support is situated near $1.080, which also corresponds to the 76.4% Fibonacci retracement level of the recent upward swing.

A breakdown below the $1.080 level, accompanied by a sustained close beneath it, could trigger further losses, pushing the price towards $1.0650. The subsequent major support is located in the $1.050 zone, and a break below this could lead to a test of the $1.020 level. Any additional downward momentum might see XRP retesting the $1.00 mark.

Technical Indicators

• Hourly MACD: The Moving Average Convergence Divergence for XRP/USD is currently losing momentum within the bearish territory.
• Hourly RSI: The Relative Strength Index for XRP/USD has fallen below the 50 level.

Major Support Levels: $1.1000, $1.0800
Major Resistance Levels: $1.1200, $1.1350