XRP Price Decline Gains Momentum, Downward Pressure Mounts

XRP's price has struggled to maintain levels above $1.3950 and has initiated a downward correction. Currently, it is testing the support level at $1.3680, but the risk of further losses remains.

Key Takeaways

XRP's price has begun a downward correction after failing to maintain gains above $1.4120.
The current trading price is around $1.3720, near the 100-hourly Simple Moving Average.
A bearish trend line is forming with resistance identified at $1.3910 in the XRP/USD hourly chart (data derived from Kraken).
If XRP stays above $1.3680, there is potential for a price increase.

XRP Price Signals Trouble

XRP Price Experiences a Correction

The XRP price has faced challenges, failing to remain above $1.4120 and commencing a downward correction similar to trends in Bitcoin and Ethereum. The price dipped below essential levels of $1.4050 and $1.4020, suggesting a shift into a negative trading zone.

This decline below the 50% Fibonacci retracement level, calculated from the swing low of $1.3217 to the high of $1.4430, indicates a more bearish sentiment. A new bearish trend line with resistance forming at $1.3910 is visible on the hourly XRP/USD chart.

Currently, XRP is trading close to $1.3720 and is positioned near the 100-hourly Simple Moving Average. Should there be a rebound, resistance is anticipated near the $1.3840 mark, with the first significant resistance level being around $1.3920. Should the price exceed this point, it may rise to test the $1.40 level.

XRP Price
Source: XRPUSD on TradingView.com

A decisive move above the $1.40 resistance could motivate the price towards the $1.4140 level. Additional gains could lead to a test at $1.4250. Nevertheless, the primary hurdle for bulls is located near $1.450.

Potential for Further Declines

If XRP does not overcome the resistance around the $1.40 range, it may initiate a more significant downturn. The initial support level to watch for downside movement is around $1.370, while the next substantial support is at approximately $1.3680, correlating with the 61.8% Fibonacci retracement of the earlier upward movement from $1.3217 to $1.4430.

In the event of a breakdown and a close beneath the $1.3680 level, XRP could decline further towards the $1.340 level. Significant support is also positioned near the $1.3250 zone; if breached, it could lead to further declines toward $1.3120, with the potential of testing $1.3050 if losses continue.

Technical Indicators

Hourly MACD: The MACD for XRP/USD is gaining momentum in a bearish context.
Hourly RSI (Relative Strength Index): The RSI indicates a position below the 50 mark for XRP/USD.
Major Support Levels: $1.3680 and $1.3250.
Major Resistance Levels: $1.3910 and $1.4000.