XRP is currently undergoing a pullback after recently testing gains around the $0.530 range. The cryptocurrency is now approaching the $0.520 support level, which is crucial for a potential upward reversal.
Following a notable upward movement that lifted XRP above $0.5150, the price successfully broke past the $0.520 resistance but has struggled to maintain the momentum seen in larger digital currencies like Bitcoin and Ethereum . It reached a peak of approximately $0.5307 before the recent downturn, which saw prices dip below the $0.5265 level. Stakeholders are noting that this fluctuation has pushed XRP beneath the 50% Fibonacci retracement level of the previous increase from a low of $0.5111 to that recent high.
Despite the retracement, XRP is trading above $0.5200 and remains above the 100-hour Simple Moving Average. A significant bullish trend line is emerging, indicating ongoing support at $0.520. The price could regain strength if it successfully rises above the $0.5300 level.
Looking ahead, XRP may encounter resistance near the $0.5250 level, with the primary resistance identified at $0.5300. Should the price breach this point, the next resistance levels to monitor would be around $0.5320, which may propel the price towards the $0.5450 level, and potentially leading to further gains nearing $0.5550 or $0.5850. The $0.6000 level is recognized as a significant hurdle for any sustained upward movement.
Conversely, if XRP cannot overcome the $0.5250 resistance, it may trigger a downturn. Initial downside support is expected around $0.5200, with further support at $0.5185 and the 61.8% Fibonacci level of the prior increase. A decisive breach below $0.5185 could leave XRP vulnerable to further declines, potentially heading toward the support level near $0.5050 and possibly down to $0.5000.
Technical indicators suggest a diminishing bullish momentum, as the MACD is losing strength while the Relative Strength Index (RSI) falls below the neutral 50. Important levels to watch are the $0.5200 and $0.5185 for support, with resistance levels established at $0.5250 and $0.5300.
