XRP Price Signals Downside Correction: Is a Pullback Coming?

XRP Price Signals Downside Correction: Is a Pullback Coming?

XRP price is correcting gains from the $1.185 resistance zone. The price might revisit the $1.00 support before the bulls appear.

• XRP price started a downside correction below the $1.120 level.
• The price is now trading below $1.100 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support at $1.110 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could retest the $1.00 support zone before the bulls take a stand.

XRP Price Dips Again

XRP price struggled to extend gains above the $1.180 and $1.20 levels. It started a downside correction and traded below the $1.150 level. It underperformed Bitcoin and Ethereum in the past two sessions.

There was a drop below the 50% Fib retracement level of the upward move from the $0.9988 swing low to the $1.1860 high. Besides, there was a break below a key bullish trend line with support at $1.110 on the hourly chart of the XRP/USD pair.

The price is now trading below $1.100 and the 100-hourly Simple Moving Average. It is now approaching the 76.4% Fib retracement level of the upward move from the $0.9988 swing low to the $1.1860 high.

On the upside, the price might face resistance near the $1.100 level. The first major resistance is near the $1.140 level. The next key resistance could be $1.1850.

A clear move above the $1.1850 resistance might send the price toward the $1.200 resistance. Any more gains might send the price toward the $1.2250 resistance or even $1.2320 in the near term. The next major hurdle might be $1.250.

More Downsides?

If XRP fails to clear the $1.140 resistance zone, it could continue to move down. Initial support on the downside is near the $1.040 level. The next major support is near the $1.00 level.

If there is a downside break and a close below the $1.00 level, the price might continue to decline toward the $0.980 support in the near term. The next major support sits near the $0.920 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

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

Major Support Levels – $1.1040 and $1.0000.

Major Resistance Levels – $1.1400 and $1.1850.