Key Takeaways:
- XRP price struggled to clear the 50-day simple moving average (blue) and corrected lower.
- Earlier, the price broke a key bearish trend line with resistance at $0.540 on the daily chart.
- To start a fresh surge, the price must clear the 50-day simple moving average (blue) and $0.570.
NEW DELHI (CoinChapter.com) — XRP is facing heavy resistance at $0.570. To attempt a fresh increase in the near term, the price must stay above the $0.5150 support zone.
XRP Price Rejects 50-DSMA
In the last weekly analysis, we discussed how the 50-day simple moving average (blue) and the 50-week simple moving average are around the same region. Recently, XRP price started a steady increase above the $0.515 resistance zone. It even broke a key bearish trend line with resistance at $0.540 on the daily chart.
The price jumped above the $0.550 resistance but faced heavy resistance at $0.570 and the 50-day simple moving average (blue). A high was formed at $0.5707 and the price is now correcting gains, like Bitcoin and Ethereum.
There was a drop below the $0.550 and $0.540 levels. XRP tested the 50% Fib retracement level of the upward move from the $0.4791 swing low to the $0.5707 high.
The price seems to be retesting the same bearish trend line and finding bids at $0.5220. It seems like key support is forming near $0.5150. It is close to the 61.8% Fib retracement level of the upward move from the $0.4791 swing low to the $0.5707 high.
If the bulls fail to protect the $0.5150 support, the XRP price might extend losses and test $0.4780. The main uptrend support (discussed many times in the weekly analysis) is still $0.4150. A downside break below this support might set the pace for a larger decline. In this case, the price may drop toward the $0.3200 level.
Breakout Soon?
Conversely, the XRP price might stay above $0.5150 and start another increase. Immediate resistance is near the $0.5420 level, and the first key resistance is near $0.550.
The main breakout resistance is seen near the 50-day simple moving average (blue) and $0.570. A daily close above this resistance could trigger a strong increase. The next key hurdle is near the $0.650 level.
If the bulls manage to push the price above the $0.650 resistance, there could be a decent increase in the coming days. Their next stop might be $0.700.
Overall, the XRP price is struggling to surpass the 50-DSMA and $0.570. The bulls need to push the price above $0.570 to gain strength. If not, there might be another drop toward the $0.4780 support in the coming sessions.
