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10 October, 2024

XRP Price Analysis: Will the Bulls Rebound or Will the Bears Take Control?

10 October, 2024

XRP Price Analysis: Will the Bulls Rebound or Will the Bears Take Control?

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XRP has been trading within a narrow range below the $0.550 mark, exhibiting a slow but steady downward trend. If the price drops below the $0.520 support level, we could see further declines.

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Despite the recent dip, XRP remains above the $0.5080 support level. It’s currently trading below the $0.5300 mark and the 100-hourly Simple Moving Average. A bearish trend line is forming on the hourly chart of the XRP/USD pair (data source: Kraken), indicating potential resistance at $0.5285.

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Should XRP break through the $0.5300 and $0.5320 resistance levels, it could signal a shift towards bullish momentum.

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Recent Price Action

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XRP failed to sustain a rally above the $0.5350 resistance level, resulting in another downward move that pushed the price below the $0.5250 support. However, the losses were less significant compared to Bitcoin and Ethereum. A low was formed at $0.5210, and the price is currently consolidating its losses.

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A minor rebound occurred within the range, pushing the price above the $0.5250 resistance. The price also surpassed the 23.6% Fib retracement level of the downward wave from the $0.5354 swing high to the $0.5210 low.

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However, the price is now trading below $0.5320 and the 100-hourly Simple Moving Average. Any further upside could encounter resistance near the $0.5300 level. A connecting bearish trend line with resistance at $0.5285 on the hourly chart of the XRP/USD pair, close to the 50% Fib retracement level of the downward wave from the $0.5354 swing high to the $0.5210 low, adds to the bearish outlook.

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Potential Resistance and Support Levels

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The first major resistance is located at the $0.5350 level. The next key resistance is at $0.5450. Breaking above the $0.5450 resistance could propel the price towards the $0.5500 resistance. Further gains might send the price towards the $0.5650 resistance or even $0.580 in the near term. The next major hurdle would be the $0.600 level.

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Risks of Further Downside

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If XRP fails to break above the $0.5350 resistance zone, it could trigger another decline. Initial support on the downside is located at the $0.5220 level. The next major support is near the $0.520 level. If there is a downside break and a close below the $0.520 level, the price might continue to decline towards the $0.5150 support in the near term. The next major support sits near the $0.5080 zone.

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Technical Indicators

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Hourly MACD: The MACD for XRP/USD is currently losing momentum in the bearish zone.

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Hourly RSI (Relative Strength Index): The RSI for XRP/USD is below the 50 level, indicating oversold conditions.

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Key Support and Resistance Levels

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Major Support Levels: $0.5220, $0.5200

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Major Resistance Levels: $0.5350, $0.5450

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The current price action suggests a battle between the bulls and bears. While XRP is facing resistance near the $0.5350 level, a break above this level could spark a rally. However, if the price breaks below the $0.520 support, it could signal further downside. Traders should closely monitor the price action and technical indicators for clues on the future direction of XRP.