Key Takeaways:
- XRP price is struggling to clear the $0.6550 and $0.700 resistance levels.
- A major bullish trend line is forming with support at $0.5920 on the daily chart.
- The price must stay above the 50-day simple moving average (blue) to start a fresh rally.
NEW DELHI (CoinChapter.com) — XRP is consolidating above the $0.600 zone. However, the price could tumble if it continues to struggle below $0.6550 and $0.700.
XRP Price Holds Key Support
After a strong bearish reaction from $0.7420, the XRP price found support near the $0.5680 level. A low was formed near $0.5688 and the price recently trimmed some losses. There was a decent increase above the $0.580 and $0.5880 resistance levels to move again into a positive zone, like Bitcoin and Ethereum.
The price even spiked above the $0.640 level. However, the bears seem to be active near the $0.6550 and $0.6600 levels. They are protecting a close above the 50% Fib retracement level of the downward move from the $0.7424 swing high to the $0.5688 low.
The price is now consolidating above the $0.600 level and the 50-day simple moving average (blue). There is also a major bullish trend line with support at $0.5920 on the daily chart.
To start a fresh rally, XRP bulls need to clear the $0.6550 resistance zone convincingly. The next key hurdle is near the $0.700 level, which is close to the 76.4% Fib retracement level of the downward move from the $0.7424 swing high to the $0.5688 low.
If the bulls manage to push the price above the $0.700 resistance, there could be a strong upward move. Their next stop might be $0.740. Any more gains might cost $0.800 or even $0.8250.
Downside Thrust?
If the XRP price continues to struggle below the $0.6550 resistance, there could be a major decline. The main support sits near the trend line and the 50-day simple moving average (blue).
A daily close below the 50-DSMA might send the price toward the $0.5688 low. The next major support is near the $0.500 level. A downside break and close below $0.500 might spark strong bearish moves in XRP. The next support is $0.450. Any more losses might open the doors for a move toward the $0.420 support.
Overall, the price is consolidating above the $0.600 zone. The bulls must soon push the price above $0.6550 and then $0.700. If not, there might be a strong decline below the trend line and $0.5688 in the near term.
