XRP, fails to break resistance, bearish...selling pressure re-expands

▲ XRP/ChatGPT generated image

XRP entered a downward correction after failing to break through the $1.4550 level. Although the price is holding above the $1.40 level, short-term indicators are tilting bearish, making the recovery of $1.4220 a key variable for future movements.

According to crypto media outlet NewsBTC on May 7 (local time), XRP began a downward correction after failing to surpass the $1.4550 level. XRP is currently trading near $1.4080 and the 100-hour simple moving average, and an ascending trend line with support around $1.4050 has formed on the XRP/USD hourly chart based on Kraken.

XRP previously attempted a recovery by moving above $1.3850 and $1.4150. Subsequently, it extended its upward momentum by breaking past the $1.4220 resistance level, forming a high at $1.4570. However, selling pressure then entered, pushing it below $1.4320 and $1.420, and it also fell below the Fibonacci 38.2% retracement line of the upward move from the $1.3460 low to the $1.4570 high.

NewsBTC stated that if XRP attempts to rise again, it could face resistance around $1.420. The first major resistance level is $1.4220, and a break above this level opens up the possibility of testing $1.4350. A clear breakout above the $1.4350 resistance could lead XRP towards the $1.4550 resistance, and further gains could push it up to $1.4620, according to the analysis. The next major barrier for buyers to overcome is presented as $1.4840.

Conversely, if XRP fails to break through the $1.4220 resistance level, further declines could occur. The initial support on the downside is $1.4050, and the next major support is near $1.40 and the ascending trend line. This level also aligns with the Fibonacci 50% retracement line of the upward move from the $1.3460 low to the $1.4570 high.

If a closing price forms below $1.40, XRP could continue its decline towards $1.3820. The next major support is the $1.3620 level, and if this level also breaks, it could fall to $1.350. The possibility of testing $1.3320 was also mentioned if further losses occur. The hourly Moving Average Convergence Divergence (MACD) is accelerating in bearish territory, and the hourly Relative Strength Index (RSI) remained below the 50 mark.

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