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12/08/24
52
XRP Faces Key Support at $0.550 Amid Bearish Pressure
XRP has recently embarked on a downward correction after facing resistance near $0.6480. Currently, it is approaching a critical support level at $0.550. Market dynamics indicate that XRP has struggled to maintain its value above $0.620 and $0.600, which have both become significant thresholds.
After falling below these key levels, XRP has been trading beneath the 100-hourly Simple Moving Average. A bearish trend line is forming, creating resistance around the $0.5750 mark on the hourly chart of the XRP/USD pair. A breakout above the $0.580 resistance could signal an opportunity for a recovery rally.
Despite initially trying to sustain gains above $0.6450, XRP’s recent performance has mirrored corrections seen in both Ethereum and Bitcoin. The price dipped under not only the $0.5850 and $0.580 support levels but also fell below the 50% Fibonacci retracement level from earlier upward movement between $0.4925 and $0.6475. Nevertheless, buying interest has emerged near the $0.5500 support.
For XRP, the 61.8% Fibonacci retracement level from the previously attained swing low to high serves as a crucial support line. Resistance looms at the $0.570 level, with the level being the first significant hurdle. Should XRP successfully navigate past the $0.580 mark, it could aim for the $0.5950 resistance, with further targets set at $0.600 and possibly even $0.620.
Conversely, failure to surpass the $0.580 resistance could lead to further declines. Initial support on the downside is identified near $0.5520, and a break below $0.550 could drive prices down towards $0.5320, with the subsequent major support at $0.5250.
At present, technical indicators suggest a strengthening bearish momentum, with the MACD indicating downward pressure and the Relative Strength Index falling below the neutral 50 level. The major support levels to monitor are $0.5550 and $0.5500, while resistance can be found at $0.5750 and $0.5800.
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