XRP, Fails to Overcome Resistance, Weakens...Selling Pressure Expands Again

▲ XRP/ChatGPT generated image

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

According to crypto media outlet NewsBTC on May 7 (local time), XRP began a downward correction after failing to surpass the $1.4550 zone. XRP is currently trading around $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 accelerated its upward momentum by breaking past the $1.4220 resistance and formed a high at $1.4570. However, selling pressure then entered, pushing it below $1.4320 and $1.420, and it also fell below the 38.2% Fibonacci retracement level of the upward move from the $1.3460 low to the $1.4570 high.

NewsBTC stated that if XRP attempts another rally, it could face resistance around $1.420. The first major resistance level is $1.4220, and breaking above this zone opens up the possibility of testing $1.4350. A clear breakout of the $1.4350 resistance could see XRP heading towards the $1.4550 resistance, with a potential further rise to $1.4620, according to analysis. The next major barrier for buyers to overcome is stated to be $1.4840.

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

If the closing price forms below $1.40, XRP could continue its decline towards $1.3820. The next major support zone is $1.3620, and if even this zone 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 the bearish zone, 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 any investment losses based on it. The content should be interpreted for informational purposes only.*