Ripple explores downstream levels amid the hunt for higher support
March 25th, 2021
Ripple made an about-turn move following the failure to sustain gains above $0.55. Initially, the cross-border token had stepped above $0.6, but again the momentum lost steam, opening the door for the ongoing declines.
The freefall intensified, with XRP losing more than 12% in 24 hours. Several support levels were shattered, including $0.55 and $0.5. On the downside, $0.45 is functioning as the crucial support area in the short term.
Ripple needs to hold the ground above the 100 Simple Moving Average (SMA) and the 200 SMA on the 4-hour chart to remove excess pressure on the level around $0.45. Otherwise, losses eyeing -$0.4 and $0.35 are likely to come into the picture.
The bearish outlook has been validated by the Moving Average Convergence Divergence (MACD) indicator’s negative gradient. More sell orders will be triggered if the MACD falls into the negative territory. Besides, the least resistance path is still downwards based on the MACD line (blue) crossing under the signal line.
XRP/USD 4-hour chart
It is worth mentioning that the pessimistic outlook will be invalidated if the support at $0.45 holds firmly and bulls force a trend reversal above $0.5. Price action past the 50 SMA on the 4-hour chart may trigger buy orders as investors speculate the rise to $0.65.
Ripple intraday levels
Spot rate: $0.48
Resistance: $0.5 and $0.55