XRP, the 4th largest cryptocurrency by market cap, retraced from above $0.5 against the USD. XRP is currently holding the key $0.34 support, and there is a possibility for the cryptocurrency to resume its uptrend towards $0.42 and $0.44 areas.
XRP Could Resume Its Spectacular Rally
After a notable break above $0.32, the price of XRP embarked on a strong increase. There was a clear break above the $0.40 resistance level and the $0.50 level.
The price of the digital token even surged above $0.52 and settled above the 100-day simple moving average. Nevertheless, the bulls failed to clear the $0.55 resistance area. A high was formed near $0.5343 before starting a fresh decline.
A break below the $0.42 and $0.40 support levels followed. The price of the cryptocurrency even declined further below the 50% Fib retracement level of the upward move from the $0.2456 swing low to $0.5343 high. Currently, the XRP price is still holding the $0.34 support level and the 100-day simple moving average.
Source: XRPUSD on TradingView.com
The 61.8% retracement level of the upward move from the $0.2456 swing low to $0.5343 high is also acting as a support.
On the upside, the price of XRP is facing hurdles near $0.40. A major bearish trend line is also forming with resistance near $0.47 on the daily chart of the XRP/USD pair.
Also, there are indications that the price is likely to revisit the $0.44 and $0.45 resistance if there is no break below $0.32.
Is There a Possible Downtrend for XRP Price?
If XRP fails to start a decent increase, it could find support near the $0.37 and $0.36. The first major support is near the $0.3550 zone.
The major support could be near $0.32. So, if the price of XRP fails to maintain its stability above $0.32, it could end in downside extension towards the $0.2450 support level.
Credible Crypto Says XRP Bottom Is In
A couple of hours ago, an XRP-centric analyst and trader, Credible Crypto, reiterated that XRP has either bottomed or close to a bottom. Since then, XRP has been showcasing a price resurgence.
Credible Crypto tweeted, “I don’t trade fractals but you already know I think we are close to a bottom (a dip to monthly level at .305 still technically possible) and the current PA looks strikingly similar to the last bottom I pointed out before we rallied to .75. Bottom is in, or close to in, on XRP.”