Key Takeaways:

XRP price declined below the $0.60 and $0.50 support levels.

A major contracting triangle is forming with support at $0.4250 on the weekly chart.

The price is signaling weakness below the 50-week simple moving average and $0.50.

NEW DELHI (CoinChapter.com) — XRP extended losses below $0.550 and $0.500. A close below the $0.4250 support could spark heavy losses in the coming weeks.

XRP Price Breaks Key Support

In the last analysis, we discussed a double-top pattern near the $0.7420 zone. XRP failed to climb higher and started a major decline below the $0.600 support zone. More importantly, it declined below a connecting bullish trend line with support at $0.510 on the weekly chart.

The bears pushed the price below the 76.4% Fib retracement level of the upward move from the $0.4858 swing low to the $0.7424 high. Recently, there were heavy bearish moves in Bitcoin and Ethereum due to Israel-Iran war tensions.

XRP price weekly chart | Source: TradingView.com

BTC declined toward the $60,000 support, and ETH spiked below the $3,000 support zone. XRP also gained bearish momentum and settled below the 50-week simple moving average (blue).

It dived and tested the 1.236 Fib extension level of the upward move from the $0.4858 swing low to the $0.7424 high at $0.4250. On the same chart, a major contracting triangle is forming with support at $0.4250.

The current price action suggests more downsides in XRP below the $0.500 support. The main uptrend support is now forming near the $0.4250 zone. If the bulls fail to protect the triangle support, there might be a strong bearish reaction.

The next major support is $0.40. A downside break below the $0.40 support might increase selling pressure. In the stated case, the price may decline toward the $0.3280 level. Any more losses below $0.30 might send the price toward $0.2840.

Fresh Increase Possible In Near Term?

Conversely, XRP bulls might defend more downsides below the triangle support. Immediate resistance to start a fresh increase sits at $0.50. The first major resistance is near the $0.550 level and the 50-week simple moving average (blue).

A weekly close above the 50-week simple moving average (blue) could spark a steady increase. In the stated case, the next stop for XRP bulls could be $0.620. The main resistance is still near the $0.740 zone, above which the price could start a larger uptrend toward $1.00.

Overall, the XRP price is signaling weakness below $0.50. It seems like the $0.4250 support is the key. A downside break might trigger heavy losses and the price could test 0.3280. Conversely, the price might increase fresh and attempt an upside break above $0.550.

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Filed under: Bitcoin - @ April 16, 2024 6:29 am