Ripple’s XRP Resistance Woes: The Struggle to Break Free from the $0.50 Price Shackles

Ripple CTO Clears The Air On How Much XRP He Actually Owns

The crypto market has always been volatile, and XRP’s recent price movements have left many on edge. After an encouraging rally, XRP failed to break through the crucial $0.6 resistance level again. As the price of XRP hovers close to the $0.52 mark, the question on everyone’s mind is: why does XRP keep slipping?

A Promising Rally Meets Resistance

Like the rest of the market, XRP enjoyed a period of consistent price growth. However, the momentum ended around the $0.55 zone, forming a short-term top. This resistance proved too strong, leading to a new price drop. Currently, XRP is trading below $0.53 and is also beneath the 100-hour Simple Moving Average (SMA), signaling a bearish trajectory in the short term.

The technical setup for XRP does not signal confidence. A bearish trend line is shaping around the $0.532 level. XRP must remain above the 100-hour SMA to avoid a sharp decline. Failing to hold this line could trigger a significant drop.

After reaching a peak at $0.557, XRP’s price pulled back, breaking below key support levels. It fell under the $0.5420 mark and dipped below the 50% Fibonacci retracement level from the $0.5065 low to the $0.5571 high. Despite this dip, bullish investors are trying to maintain the 61.8% Fibonacci retracement level from $0.506 to $0.557. XRP is now hovering around $0.5271, slightly above the 100-hour SMA.

Potential Upside

The closest resistance level is around $0.5310, with a bearish trend line at $0.5320. Beyond $0.5350, the next resistance is at $0.5450. If the bulls break through this level, the price could rise toward the $0.5570 resistance and potentially even to $0.5650.

However, the bearish trend could continue if XRP can’t pass through the $0.5350 resistance. The initial downside support is near $0.5250 and the 100-hour SMA. The next significant support is at $0.5185. A break below $0.5185 and a close at this level could increase bearish momentum, potentially testing the $0.5065 support level.

Market Sentiment and Technical Indicators

The technical indicators paint a bearish picture. The hourly MACD (Moving Average Convergence Divergence) for XRP/USD is gaining pace in the bearish zone, showing increasing downward momentum. Additionally, the hourly RSI (Relative Strength Index) for XRP/USD is below 50, further confirming bearish conditions.

XRP is currently at a critical juncture. To avoid further losses, the price needs to stay above key support levels, particularly the 100-hour SMA. If it fails to hold these levels, more significant declines could be on the horizon, potentially bringing the price down to the $0.5065 support level. For now, XRP is playing with fire around the $0.50 mark, and traders should be careful, as the market can change in an instant.

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