XRP price at risk of significant economic downturn

The XRP price failed to break above the $0.5050 resistance zone. The price is currently falling and may gain momentum below the support at $0.480.

• XRP is gaining bearish momentum below the $0.500 support.
• The price is currently below $0.500 and the 100-hour simple moving average.
• On the hourly chart, the XRP/USD pair broke below the converging bullish trendline with support at $0.4950 (Kraken data source).
• The pair could fall sharply if it breaks the support zone at $0.480.

Support for XRP price breaks

XRP price attempted a recovery wave above $0.4920, similar to Ethereum and Bitcoin. The price rose above the resistance zone at $0.500, but bears were active near $0.5050.

The high has formed at USD 0.5053 and the price is falling again. There has been a move below the $0.4980 and $0.4950 support levels. The price was trading below the 23.6% Fib retracement level of the recovery wave, from a low of $0.4533 to a high of $0.5053.

Additionally, there was a break below the converging bullish trendline with support at $0.4950 on the hourly chart of the XRP/USD pair. The pair is currently trading just above the 50% Fib retracement level of the recovery wave from a low of $0.4533 to a high of $0.5053.

However, it is still trading below $0.50 and the 100-hour simple moving average. On the other hand, the price is facing resistance near the USD 0.4920 level. The first key resistance is located near USD 0.4950. The next major resistance is near the $0.500 level.

A close above the $0.500 resistance zone could result in a price rally. The next key resistance is around USD 0.5050. If there is a close above the $0.5050 resistance level, there could be a steady rally towards the $0.5250 resistance level. Any further upside could push the price towards the resistance at $0.5350.

More losses?

If XRP fails to break the resistance zone at $0.4950, it may continue to decline. Initial downside support is near the $0.480 level.

The next major support is located at $0.4740. If there is a breakout to the downside and a close below the $0.4740 level, the price could accelerate lower. In this case, the price may drop and retest the support at USD 0.4550 in the near future.

Technical indicators

Hourly MACD – The MACD for XRP/USD is currently gaining momentum in a bearish zone.

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

Major support levels – USD 0.4800 and USD 0.4740.

Major resistance levels – USD 0.4950 and USD 0.5050.