Key Takeaways:
- XRP price started a fresh decline after testing the $0.740 resistance.
- It is now testing a crucial bullish trend line with support at $0.5780 on the daily chart.
- The price could start a major uptrend if it stays above the trend line and the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — XRP is correcting gains below $0.700. The price is now testing an important support at $0.5750 and might attempt a fresh increase.
XRP Price Trims Gains
After a steady increase, the XRP price failed to clear the $0.7450 and $0.7500 resistance levels. A high was formed at $0.7424 and the price started a downside correction. There was a move below the $0.720 and $0.700 levels.
In the past few sessions, Bitcoin, Ethereum, XRP, DOGE, and other cryptocurrencies saw a steady decline. The bears pushed XRP below the $0.650 support zone. There was a drop below the 50% Fib retracement level of the upward move from the $0.4857 swing low to the $0.7424 high.
The price is now trading near crucial support at the 50-day simple moving average (blue). There is also a major bullish trend line with support at $0.5780 on the daily chart.
The trend line is close to the 61.8% Fib retracement level of the upward move from the $0.4857 swing low to the $0.7424 high. Clearly, the trend line and the 50-day simple moving average (blue) confluence zone hold the key.
If XRP bulls fail to protect the trend line support and the price settles below the 50-day simple moving average (blue), there could be more downsides. The next major support is near the $0.5465 level. The main support is now forming near the $0.4850 level.
A downside break and close below $0.4850 might spark bearish moves in XRP. The next support is $0.450, where the bulls might take a stand. Any more losses might open the doors for a move toward the $0.420 support.
Fresh Rally?
Conversely, the XRP price might start a fresh increase from the trend line support. Immediate resistance sits at $0.600. The first major resistance is near the $0.6150 level.
The main resistance is at $0.6650. If the bulls manage to push the price above this, there could be a strong upward move. Their next stop might be $0.70. Any more gains might send the price toward $0.720 or even $0.740.
Recently, Ripple was the FinTech breakthrough award winner for 2024 for best cross-border payments platform and best DeFi infrastructure platform.
Overall, the price is trading near a crucial juncture at $0.5750. If the bulls remain active, XRP could start a fresh increase toward $0.665. On the other hand, there might be more downsides to the $0.4850 support.
