XRP, Fails to Cross $1.4 Threshold and Frustrated... Is the $1.318 Support Line Okay?

▲ XRP/ChatGPT generated image

XRP has turned to a sharp decline after failing to break the $1.40 resistance line, giving back most of its recent gains.

According to crypto media outlet NewsBTC on April 9 (local time), XRP price began a downward correction near $1.40, showing a weakening in market buying interest. XRP gained momentum, surpassing the $1.3650 resistance line, riding the upward trend of Bitcoin (BTC) and Ethereum (ETH), but failed to cross the $1.40 threshold and turned bearish. This decline caused XRP to lose the $1.3650 and $1.350 support lines consecutively, entering a technical bearish phase.

Looking at technical indicators, XRP formed a peak at $1.3963 and has since entered a full-fledged downward trend. The current price is trading below the $1.340 mark and has fallen below the 100-hour Simple Moving Average (SMA). In particular, the price has slipped below the Fibonacci 50% retracement line of the upward move from the $1.2940 low to the $1.3963 high, intensifying the downward pressure. On the hourly chart, a downtrend line with resistance formed near $1.3550 is observed, acting as an obstacle to a short-term rebound.

For the downside support, $1.3220 is acting as the primary defense line. If this level breaks, the next major support line is expected to be around $1.3180, which is the Fibonacci 76.4% retracement line. If even the $1.3180 support line is breached, the downtrend could accelerate, potentially retesting the early $1.30s or the $1.2940 low. With sellers dominating the market, the defense of key support lines is expected to be a watershed moment for future price trends.

For a rebound, XRP must first overcome the short-term resistance zone near $1.3450. Only then, by breaking above the most critical resistance line at $1.3550 and the downtrend line, can a significant recovery be expected. If the price settles above $1.3550, it will gain the momentum to test the $1.3650 and $1.3880 resistance lines consecutively. Ultimately, it must break through the $1.40 and $1.4250 resistance lines to fully escape the downtrend and begin a new upward rally.

Currently, the XRP market is under the overwhelming dominance of bear forces, as bulls have lost their initiative and are retreating. Temporary rebounds without accompanying trading volume carry a high risk of being merely technical rebounds within a downtrend, requiring caution from investors. The failure to reclaim the 100-hour Simple Moving Average is further stimulating selling pressure, suggesting a conservative approach is needed for the time being.

*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.*