XRP Plunge Imminent as Key Support Line Is About To Crumble

NEW DELHI (CoinChapter.com) — XRP is consolidating above $0.4850 and below the 100-DSMA. The price could drop sharply if there is a close below the $0.4850 support.

XRP Price Turns Red

XRP saw a steady decline from the $0.6600 resistance zone in the past few days. As discussed in the past XRP price prediction, the bears remained active and were able to push the price below the $0.600 support zone.

The price declined below the $0.5500 pivot level and settled below the 50-day simple moving average (blue). It revisited the key support at $0.4850. The current price action suggests that the bulls struggle to keep prices above the $0.4850 support.

The recent low was $0.4857, and the last three daily candles were bearish. If the bulls fail to protect the $0.4850 support, XRP might drop sharply in the coming days.

Recently, Chris Larsen’s (Co-founder & Executive Chairman of Ripple) personal XRP accounts were hacked for roughly 213M XRP ($112.5M), and there was unauthorized access. However, all wallets are tracked, and corresponding exchanges are notified to freeze the affected addresses.

There is also an increase in selling pressure on Bitcoin and Ethereum. If BTC fails to climb above $45,000, it could decline below $40,000. Therefore, there is a risk of a larger decline in XRP in the coming days.

The next major support is near the $0.450 level, below which the bears might aim for a move toward the $0.415 level. The next crucial level is $0.400, where the bulls might take a stand.

Fresh Increase?

Conversely, the XRP price could stay above the $0.4850 support zone. On the upside, immediate resistance sits near the $0.5180 level or the 23.6% Fib retracement level of the downward move from the $0.6232 swing high to the $0.4857 low.

The first major resistance sits near the $0.550 level. The main resistance could be near the $0.570 zone. A major bearish trend line forms with resistance at $0.570 on the daily chart.

The trend line is close to the 61.8% Fib retracement level of the downward move from the $0.6232 swing high to the $0.4857 low, above which the price could surge toward the $0.600 zone. Any more gains might cost $0.650 or even $0.680.

Overall, the price is struggling below the $0.550 zone and the 50-day SMA. If XRP bulls fail to protect the $0.4850 support, there could be a sharp drop to $0.415 or even $0.400. On the other hand, the price could attempt a fresh increase if it clears the $0.570 resistance.