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23 October, 2024

XRP Price Analysis: Is a Further Drop on the Horizon?

23 October, 2024

XRP Price Under Pressure: A Potential Bearish Outlook

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The XRP price has recently embarked on a downward correction, trading below the crucial $0.5500 level. The bears are gaining momentum, and a close below the $0.5200 support zone could signal further losses. The price is currently trading below $0.5450 and the 100-hourly Simple Moving Average.

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A new bearish trend line has emerged on the hourly chart, forming resistance at $0.5365. If XRP breaks below the $0.5200 support zone, it could trigger a significant bearish move.

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Deeper Dive into the Decline

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XRP has struggled to maintain its gains above the $0.5600 level, mirroring the recent weakness in Bitcoin and Ethereum. The price has dropped below $0.5550 and $0.5500, even dipping below $0.5320 and testing $0.5290. The low was recorded at $0.5292, and the price is currently consolidating losses below the 23.6% Fibonacci retracement level of the downward move from the $0.5600 swing high to the $0.5292 low.

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Resistance Levels to Watch

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On the upside, the price might encounter resistance near the $0.5365 level. The first major resistance is near the $0.5440 level, which aligns with the 50% Fibonacci retracement level of the downward move from the $0.5600 swing high to the $0.5292 low. The next key resistance could be $0.5520.

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A decisive break above the $0.5520 resistance could propel the price towards the $0.5500 resistance. Further gains could potentially send the price towards the $0.5600 resistance or even $0.5650 in the near term. The next major hurdle would be $0.5800.

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Potential for Further Losses

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If XRP fails to break above the $0.5365 resistance zone, it could trigger another decline. Initial support on the downside lies near the $0.5280 level. The next major support is near the $0.5220 level.

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A downside break below the $0.5220 level could send the price towards the $0.5050 support in the near term. The next major support level is located near the $0.500 zone.

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Technical Indicators

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  • Hourly MACD: The MACD for XRP/USD is currently gaining pace in the bearish zone.
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  • Hourly RSI (Relative Strength Index): The RSI for XRP/USD is currently below the 50 level.
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Key Support and Resistance Levels

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  • Major Support Levels: $0.5280 and $0.5220
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  • Major Resistance Levels: $0.5365 and $0.5520
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The XRP price is facing bearish pressure, and further losses could be on the horizon. Traders and investors should monitor the $0.5200 support zone and the $0.5365 resistance level for potential turning points.