XRP, 3 resistance lines block the rise... how far will it fall?

▲ XRP, Dollar (USD)

XRP has failed to settle at $1.40 and has even given up the $1.380 support line, facing an imminent crisis where it could further plummet to the $1.320 level.

According to crypto media outlet NewsBTC on April 29 (local time), XRP entered a short-term bearish market by breaking below the $1.3840 level, in line with the downtrend of Bitcoin (BTC) and Ethereum (ETH). Currently, XRP is trading below the 100-hour simple moving average and is undergoing a consolidation process near the low formed at $1.3460 to stabilize the decline.

Hourly chart analysis using Kraken exchange data confirmed a downtrend line with resistance formed around $1.3840. After a recent drop from the high of $1.4061, there was a slight recovery above the Fibonacci 50% retracement level, but buying strength remains insufficient. Even if a new rebound attempt appears, the strong resistance at the Fibonacci 61.8% retracement level of $1.3830 and the downtrend line is expected to hinder any upward movement.

If XRP fails to break through the $1.3840 resistance zone, further decline is inevitable. The initial downside support is formed around $1.3680, and if this line breaks, there is a high risk of it being pushed down to the next major support line at $1.3620. Particularly, if it fails to hold the $1.350 level and a downward breakout is confirmed, the price is likely to drop past $1.3450 to $1.3320 and $1.320.

Conversely, to reverse the downtrend, XRP must first overcome the resistance around $1.3920. If it succeeds in forming a closing price above the psychological resistance level of $1.40, it will set the stage for a recovery rally towards $1.420 and $1.4250. Subsequently, if additional capital inflow supports it, the price could expand its gains to $1.450 and $1.4650, creating a strong rebound.

Currently, the XRP market is in a fierce battle between bulls and bears over the critical watershed of $1.3840. As technical indicators generally point to downward pressure, investors are preparing for further declines and closely monitoring changes in market liquidity. Whether there will be an additional drop to $1.320 is expected to be determined by the closing price position in the coming days.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*