XRP Price Slump Continues: Why Investors Should Brace for Extended Downtrend

Key Takeaways:

  • XRP price signals a prolonged downtrend below the 50-day simple moving average (blue).
  • A crucial bearish trend line forms with resistance at $0.5050 on the daily chart.
  • The price could extend its losses unless the bulls pump it above $0.5160.
XRP analysis
XRP analysis

NEW DELHI (CoinChapter.com) — XRP moved in a bearish zone below $0.520. The bears seem to be in control and might plan to push the price toward the $0.4140 support.

XRP Price Turns Red

In the last technical analysis, we discussed how XRP broke an important contracting triangle with support at $0.510 to move into a bearish zone. It even settled below the 50-day simple moving average (blue). It resulted in a sharp decline below $0.50 and the price below $0.4520.

A low was formed at $0.4526 and the price recently attempted a recovery wave like Bitcoin. There was an upside correction above the $0.4850 resistance. The price climbed above the 50% Fib retracement level of the downward move from the $0.5567 swing high to the $0.4526 low.

XRP price daily chart | Source: TradingView.com
XRP price daily chart | Source: TradingView.com

The bulls even pushed the price above the $0.50 resistance. However, the previous key support at $0.520 acted as a strong barrier (support turned resistance).

XRP faced rejection near the $0.520 zone, the 50-day simple moving average (blue), and the 61.8% Fib retracement level of the downward move from the $0.5567 swing high to the $0.4526 low. There is also a crucial bearish trend line forming with resistance at $0.5050 on the daily chart.

The price is now consolidating below the $0.50 zone. Immediate support sits near the $0.4780 zone. The first major support sits at $0.4620. The next key support is near the $0.4520 level, below which the price could slide and test the $0.4280 support.

A downside break below the $0.4280 support might set the pace for more losses. In the stated case, the price may decline toward the $0.4140 level or even $0.40.

Another Recover Attempt?

Conversely, XRP price might attempt a fresh increase above $0.50. The first major resistance is near the $0.5050 level. The main resistance is now near the $0.520 zone and the 50-day simple moving average (blue).

A daily close above the $0.520 resistance might start a fresh surge. In the stated case, the price might climb and test the $0.5680 resistance. In the stated case, there are high chances of a move toward the $0.60 resistance zone.

Fundamentally, Ripple recently released a study involving 350+ financial leaders and discussed the challenges in payment reconciliation. The research highlighted key pain points, including Data Accuracy and Completeness, Reporting Experience, and Support Access. Ripple plans to use this marketplace feedback to make the Ripple Payments solution stand out in the reconciliation user experience.

Overall, XRP price technically trades in a bearish zone below $0.520. If there is no daily close above $0.5050 and $0.520, there could be more downsides toward $0.4140 in the coming days.

Leave a Comment

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com WestcoastNFT.com