Tuesday, June 18, 2024
Home > Analysis > XRP Price Faces Hurdles: Will It Overcome the Obstacles?

XRP Price Faces Hurdles: Will It Overcome the Obstacles?

XRP price is slowly moving higher above the $0.5200 zone. It is now facing hurdles near $0.5320 and might correct lower in the near term.

  • XRP is attempting a fresh increase above the $0.5250 zone.
  • The price is now trading above $0.5220 and the 100-hourly Simple Moving Average.
  • There was a break below a key bullish trend line with support at $0.5260 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair could correct lower toward the $0.5220 support before the bulls appear again.

XRP Price Gains Traction

XRP price remained well-supported above the $0.5120 zone and extended its increase like Bitcoin and Ethereum. The price was able to clear the $0.5200 and $0.5250 levels.

There was a clear move above the $0.5300 resistance and the price tested the $0.5320 zone. A high was formed at $0.5325 and the price is now correcting gains. It traded below the 23.6% Fib retracement level of the upward move from the $0.5080 swing low to the $0.5325 high.

There was also a break below a key bullish trend line with support at $0.5260 on the hourly chart of the XRP/USD pair. The pair is now trading above $0.5220 and the 100-hourly Simple Moving Average.

On the upside, the price is facing resistance near the $0.5200 level. The first key resistance is near $0.5320. The next major resistance is near the $0.5350 level. A close above the $0.5350 resistance zone could send the price higher. The next key resistance is near $0.550.

If there is a close above the $0.550 resistance level, there could be a steady increase toward the $0.5560 resistance. Any more gains might send the price toward the $0.5650 resistance.

More Losses?

If XRP fails to clear the $0.5350 resistance zone, it could continue to move down. Initial support on the downside is near the $0.5260 level.

The next major support is at $0.5200 or the 50% Fib retracement level of the upward move from the $0.5080 swing low to the $0.5325 high. If there is a downside break and a close below the $0.520 level, the price might accelerate lower. In the stated case, the price could decline and retest the $0.5120 support in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.5260 and $0.5220.

Major Resistance Levels – $0.5300 and $0.5320.

Source