NEW DELHI (CoinChapter.com) — XRP’s price today corrected lower and is now testing a critical support confluence comprising a horizontal level and the 100-day simple moving average (100-day SMA; the blue wave) near $0.570. The token could rebound sharply If the bulls defend the floor.
XRP Price Revisits Key Support Today
Earlier this month, XRP started a steady increase from the $0.474 support. A break wask above the $0.535 and $0.600 resistance levels to start a fresh uptrend.
The price climbed above the $0.650 level and settled above the 50-day simple moving average. Finally, the bears took a stand near the $0.735 zone. A high was around $0.733, and the price started a downside correction.
There was a drop below the $0.670 and $0.620 support levels. XRP traded below the 50% Fib retracement level of the upward move from the $0.4733 swing low to the $0.7330 high.
Binance Settlement Behind Market Decline
The bears gained strength after the latest SEC case against Kraken. In addition, the crypto market, including XRP, faced selling pressure in the last 24 hours due to reports of Binance’s settlement in which the exchange will pay a $4.3 billion fine for violating money laundering laws and U.S. sanctions.
More importantly, the company’s CEO, Changpeng “CZ” Zhao, stepped down. CZ also announced Richard Teng as the new CEO of Binance. Soon after, Teng tweeted about the company’s strong fundamentals and boosted investors’ confidence.
Looking at the daily chart of XRP, the price is approaching crucial support at $0.570 and the 50-day SMA. It is close to the 61.8% Fib retracement level of the upward move from the $0.4733 swing low to the $0.7330 high.
If the bulls protect the 100-DSMA, they might attempt a fresh increase. Immediate resistance is near a bearish trend line at $0.6020. The first major resistance sits at $0.620.
A successful daily close above the trend line and then $0.620 could spark a strong rally. The first major hurdle sits at $0.672. Any more gains might cost $0.700 or even $0.730.
More Downsides for XRP Price Today?
If the XRP price fails to stay above the 100-day SMA, it could continue to move down. The first major support is near the $0.534 pivot level. If there is a close below the $0.535 and $0.534 levels, there could be a drop toward the main support at $0.474.
Overall, the XRP price is testing an important support near $0.570. If the bulls protect the stated support, the price could start a fresh increase. Conversely, the price might dive toward the $0.474 support in the coming days.
