Key Takeaways:
- XRP price is showing a few bearish signs below the 50-day simple moving average (DSMA).
- A major contracting triangle is forming with support near $0.610 on the daily chart.
- The price could decline sharply toward the $0.550 support before the bulls take a stand.
New Delhi(Coinchapter.com): XRP is consolidating below $0.650 and the 100-DSMA. The price could see a sharp decline if there is a close below the $0.600 support.
XRP Price Grinds Lower
After a steady increase, XRP failed to clear the $0.725 resistance zone. A new multi-week high was formed near $0.7288 before the price corrected lower. However, the bulls seem to be active near the $0.580 and $0.600 levels.
The last swing low was formed near $0.5773 and the price is now consolidating losses. There was a fresh increase attempt above the $0.620 resistance. The price climbed above the 50% Fib retracement level of the downward move from the $0.7288 swing high to the $0.5773 low.
However, the bears seem to be protecting an upside break above the $0.6550 resistance, like Bitcoin at $44,500 and ETH at $2,450. The price is now showing a few bearish signs below the $0.600 zone and the 50-day simple moving average (blue).
There is also a major contracting triangle forming with support near $0.610 on the daily chart. If XRP price fails to stay above the triangle support, it could revisit $0.600.
A daily close below the $0.600 support could spark sharp bearish moves. The next major support is near the $0.550 level. Any more losses might send the price further lower toward the $0.4740 zone in the coming sessions.
Another Increase Attempt?
Conversely, XRP price could stay above the triangle and the $0.600 support zone. On the upside, immediate resistance sits near the $0.6380 level.
The first major resistance sits near the $0.650 zone or the 61.8% Fib retracement level of the downward move from the $0.7288 swing high to the $0.5773 low. The main resistance could be near the triangle trend line, above which the price could surge toward the $0.680 zone. Any more gains might send the price toward $0.800 or even $0.820.
Overall, the price is struggling below the $0.650 zone and the 50-day SMA. If XRP bulls fail to protect the $0.600 support, there could be a sharp drop to $0.550 or even $0.500. On the other hand, the price could attempt a fresh increase toward $0.728.
