Charted: Ripple (XRP) Nosedives, Why Bears Could Aim $0.42

Ripple started a major decline after it broke the $0.5300 support against the US Dollar. XRP price is now trading well below $0.5000 and it could continue to move down towards $0.4200.

• Ripple started a strong decline from well above the $0.5300 support zone against the US dollar.
• The price is now trading well below $0.5000 and the 100 simple moving average (4-hours).
• There was a break below a major declining channel with support near $0.5400 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
• The pair is gaining bearish momentum and it could continue to move down towards $0.4300 or $0.4200.

Ripple’s XRP Price is Gaining Bearish Momentum

After a sharp spike towards $0.6500, ripple’s XRP price started a steady decline. The price traded below the $0.6000 and $0.5500 support levels. Recently, there was a sharp decline in bitcoin and Ethereum, resulting in more losses in XRP.

There was a crucial downside break below the $0.5300 support level and the 100 simple moving average (4-hours). There was also a break below a major declining channel with support near $0.5400 on the 4-hours chart of the XRP/USD pair.

Source: XRPUSD on TradingView.com

The pair settled below the $0.5000 support level and traded below the 50% Fib retracement level of the key upward move from the $0.4391 swing low to $0.6585 high.

It opened the doors for more losses below $0.4800. XRP price is now trading below the 76.4% Fib retracement level of the key upward move from the $0.4391 swing low to $0.6585 high. Any more losses could lead the price towards $0.4500. The next major support is near the $0.4300 level, below which the price could even test $0.4200.

Upsides Capped in XRP?

If ripple starts a recovery wave, it could face a lot of hurdles, starting with $0.5000. The first major resistance for the bulls is near the $0.5250 and $0.5300 levels (the recent breakdown zone).

The main resistance is now forming near the $0.5500 level and the 100 simple moving average (4-hours). A close above the $0.5300 and $0.5500 levels could initiate a fresh rally towards the $0.6500 zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.

Major Support Levels – $0.4500, $0.4300 and $0.4200.

Major Resistance Levels – $0.5000, $0.5300 and $0.5500.

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