Key Takeaways:
- XRP’s price declined after it failed to clear the $0.7420 resistance.
- It is approaching a crucial bullish trend line with support at $0.540 on the weekly chart.
- The price must stay above the 50-week simple moving average and $0.540 to start a fresh increase.
YEREVAN (CoinChapter.com) — XRP is approaching a crucial juncture at $0.540. If the bulls manage to defend against a bearish break, there could be a fresh increase.
XRP Price Reaches Key Juncture
In March 2024, the XRP price faced a major rejection near the $0.7420 level. It seems like the price formed a double-top pattern near this zone. There was a steady decline below the $0.700 and $0.680 levels.
In the past few sessions, there were bearish moves in Bitcoin and Ethereum. It increased selling pressure on XRP, ADA, and SOL. Ripple’s token price traded below the 50% Fib retracement level of the upward move from the $0.4857 swing low to the $0.7424 high.
The price even tested the 50-week simple moving average (blue) at $0.5640. The bulls are currently defending more losses below the 50-week simple moving average (blue).
The main uptrend support is now forming near the $0.540 zone. There is also a crucial bullish trend line forming with support at $0.540 on the weekly chart. If XRP price fails to stay above the trend line support, there might be a strong bearish reaction.
The first major support is $0.4850. A downside break below the $0.4850 support might start a major decline. In the stated case, the price may decline toward the $0.4250 level. Any more losses below $0.4250 might send the price toward $0.3020.
Fresh Upside?
Conversely, XRP bulls might defend more downsides below the trend line support. Immediate resistance to start a fresh increase sits at $0.6150. The first major resistance is near the $0.650 level.
A clear upside break above the $0.650 mark could spark a steady increase. In the stated case, the next stop for XRP bulls could be $0.6820. The main resistance sits near the $0.740 zone, above which the price could start a larger uptrend toward $0.850.
Recently, Ripple announced plans to launch a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum, extending Ripple’s reach into both institutional and DeFi realms.
Overall, XRP price is approaching crucial support at $0.540. A downside break might trigger heavy losses and the price could test 0.4250. Conversely, the price might start a fresh increase and attempt an upside break above $0.650 in the coming weeks.
