Key Takeaways:
- XRP price consolidates losses below the 50-day simple moving average (blue).
- A crucial contracting triangle is forming with resistance at $0.4880 on the daily chart.
- The price might soon witness the next major move either toward $0.5670 or below $0.450.
XRP is struggling below the $0.50 pivot level. There could be a recovery wave if the bulls clear the $0.4800 and $0.5050 resistance levels.
XRP Price Eyes Next Key Move
In the last technical analysis, we saw a major drop in XRP price below the $0.520 and $0.5050 support levels. The bears even managed a close below the $0.50 level and the 50-day simple moving average (blue). A low was formed at $0.4526, and the price recently started a consolidation phase.
There was a minor increase above the $0.4850 and $0.4920 resistance levels, but upsides were limited, like Bitcoin. The price failed to clear the 61.8% Fib retracement level of the key decline from the $0.5567 swing high to the $0.4526 low.
The price now trades well below the $0.50 pivot level and the 50-day simple moving average. More importantly, a crucial contracting triangle is forming on the daily chart, with resistance at $0.4880.
It seems like XRP is all set for the next move. If the bulls push the price above the triangle resistance zone at $0.4880, there could be a bullish reaction. The first major resistance is near the $0.5050 level and the 50-day simple moving average (blue).
The next key resistance sits near the 76.4% Fib retracement level of the key decline from the $0.5567 swing high to the $0.4526 low at $0.5320. The main resistance is now near the $0.5675 zone.
A daily close above the $0.5675 resistance might start a fresh surge. In the stated case, the price might climb and test the $0.6200 resistance. In the stated case, there is a high chance of a move toward the $0.6650 resistance zone.
More Downsides?
Conversely, XRP price might break down and extend losses below the triangle support at $0.4650. The first major support sits at $0.4520. The next key support is near the $0.440 level, below which the price could slide and test the $0.4140 support.
A downside break below the $0.4140 support might set the pace for more losses. In the stated case, the price may decline toward the $0.400 level or even $0.3850.
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Overall, the XRP price still trades in a bearish zone below $0.5050. To start a recovery wave, the bulls need to push the price soon above the $0.4880 and $0.5050 resistance levels.
