XRP Price Faces Support Test: Is a Rebound on The Horizon?

XRP price is correcting gains from the $0.530 zone. The price is testing the $0.520 support and might bounce back to start a fresh increase.

• XRP price is eyeing more gains above the $0.5300 zone.
• The price is now trading above $0.5200 and the 100-hourly Simple Moving Average.
• There is a key bullish trend line forming with support at $0.520 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could gain bullish momentum if it settles above the $0.5300 resistance zone.

XRP Price Revisits Support

XRP price started a decent upward move above the $0.5150 zone. There was a move above the $0.520 resistance but it lagged Bitcoin and Ethereum. The bulls were able to push the price above the $0.5250 resistance.

The price traded as high as $0.5307 and is currently correcting gains. There was a drop below the $0.5265 level. The price dipped below the 50% Fib retracement level of the upward wave from the $0.5111 swing low to the $0.5307 high.

The price is now trading above $0.5200 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $0.520 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $0.5250 level. The first major resistance is near the $0.5300 level. The next key resistance could be $0.5320. A clear move above the $0.5320 resistance might send the price toward the $0.5450 resistance. Any more gains might send the price toward the $0.5550 resistance or even $0.5850 in the near term. The next major hurdle might be $0.6000.

Downside Break?

If XRP fails to clear the $0.5250 resistance zone, it could start another decline. Initial support on the downside is near the $0.5200 level. The next major support is near the $0.5185 level and the 61.8% Fib retracement level of the upward wave from the $0.5111 swing low to the $0.5307 high.

If there is a downside break and a close below the $0.5185 level, the price might continue to decline toward the $0.5050 support in the near term. The next major support sits near the $0.5000 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.5200 and $0.5185.

Major Resistance Levels – $0.5250 and $0.5300.

Source