The price of Ripple’s XRP token is showing indications of further decline against the US Dollar, with the possibility of dropping below $0.480. The token is struggling to recover above $0.550 and $0.580, trading below $0.56 and the 100 simple moving average (4 hours). A major bearish trend line is forming with resistance near $0.580 on the XRP/USD pair’s 4-hour chart.

Ripple’s Token Price Faces Challenges

After experiencing a significant decline to $0.40, Ripple’s XRP has seen a slight recovery against the US Dollar. The price managed to rise above the resistance levels of $0.45 and $0.48, similar to other cryptocurrencies like Bitcoin and Ethereum.

However, the bears have been active near the $0.550 resistance zone, resulting in XRP trading below $0.56 and the 100 simple moving average (4 hours). Additionally, a major bearish trend line is forming with resistance near $0.580.

Initial resistance comes in at the $0.550 zone, followed by the $0.565 level or the 61.8% Fibonacci retracement level. The main resistance is forming near $0.580 along with the trend line. Breaking above this resistance could propel the price toward the $0.60 resistance or the 100 simple moving average (4 hours), potentially leading to a test of the $0.6650 resistance.

Potential Further Decline for XRP?

If Ripple fails to surpass the $0.565 resistance zone, it could trigger another decline. Initial support on the downside is expected near the $0.500 zone, while the next major support is near $0.480. A downside break below $0.480 and subsequent close could extend XRP’s losses, and in that scenario, the price may retest the $0.400 support zone.

Technical Indicators:

• 4-Hours MACD – The MACD for XRP/USD is now indicating bearishness.
• 4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.50, $0.480, and $0.40.

Major Resistance Levels – $0.550, $0.565, and $0.580.

Source: XRPUSD on TradingView.com

FAQs

1. What is XRP?

XRP is a digital asset and cryptocurrency native to the Ripple payment protocol, designed to facilitate fast and low-cost international money transfers.

2. How does XRP differ from Bitcoin and Ethereum?

XRP differs from Bitcoin and Ethereum in terms of its intended use. While Bitcoin and Ethereum are primarily decentralized cryptocurrencies, XRP serves as a bridge currency for making transactions across different fiat currencies.

3. Who is Ripple?

Ripple is a technology company that developed the Ripple payment protocol and its native cryptocurrency, XRP. The company aims to enable fast and secure cross-border payments.

4. What are the potential factors behind XRP’s decline?

The bearish factors contributing to XRP’s potential decline include struggling to recover above resistance levels, trading below the moving average, and the presence of a major bearish trend line with resistance near $0.580.

5. Will XRP recover in the future?

The recovery of XRP in the future depends on various market factors and investor sentiment. It is always important to conduct thorough research and analysis before making any investment decisions.

Summary

The price of Ripple’s XRP token is facing bearish factors, struggling to recover above resistance levels and trading below the moving average. A major bearish trend line is forming resistance near $0.580. If XRP fails to surpass the resistance zone, it could experience further decline, with initial support near $0.500 and major support near $0.480. Technical indicators show bearish signs, with MACD indicating bearishness and RSI below the 50 level. Traders and investors should carefully monitor XRP’s price movements and market conditions.