XRP continues to extend losses, breaking below the $0.5650 support level. Bearish signs remain strong, suggesting a potential decline below $0.540.
XRP Faces Extended Losses
XRP recently initiated a new decline, falling below the $0.600 zone. The cryptocurrency dropped further, breaching the $0.5650 and $0.5550 support levels. As a result, it entered a bearish territory.
It even tested the $0.5440 level, marking a recent low. Currently, it is consolidating losses and attempting to recover. It aims to test the 23.6% Fibonacci retracement level, measuring from the $0.5721 high to the $0.5440 low.
However, the price remains below $0.5650 and the 100-hourly Simple Moving Average (SMA). On the upside, XRP may encounter resistance near $0.5550. A connecting bearish trend line is also forming, with resistance at $0.5560 on the hourly XRP/USD chart.
Key Resistance Levels
The trend line aligns with the 50% Fibonacci retracement level of the recent decline. If XRP clears the $0.5650 resistance zone, it could initiate a stronger recovery. Breaking above $0.5650 may push the price toward $0.5720.
Beyond that, XRP faces another key resistance near $0.5840. If it continues to rise, it could aim for $0.5920 or even $0.60 in the near term.
Risk of More Losses
However, failure to break through $0.5650 could trigger another downward movement. Initial support lies near $0.5440, with the next significant support at $0.5320.
A close below $0.5320 could push the price further down, targeting the $0.5220 support. If XRP breaks this level, it may fall toward $0.5150.
Broader Market Context
This recent price decline forms part of a broader bearish trend affecting the cryptocurrency market. Various factors, including investor sentiment and macroeconomic conditions, influence this trend. Additionally, XRP has seen a decrease in trading volume and a decline in the number of large holders. These trends indicate cautious behavior among investors. Moreover, ongoing legal challenges faced by Ripple, including the SEC lawsuit, create uncertainty. This uncertainty continues to impact investor confidence and overall market dynamics.
In conclusion, XRP’s ability to recover largely depends on overcoming immediate resistance levels. Furthermore, improving market sentiment is crucial for a potential rebound. Without a significant shift, it may continue to face downward pressure in the near term. Investors should closely monitor these developments to gauge future price movements.
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