XRP price is correcting gains from the $0.585 resistance against the US Dollar. The bulls are active near $0.550 and might soon initiate a new rally.

After forming a base above the $0.478 level, XRP started a fresh increase. The recent pump in Bitcoin and Ethereum also dragged XRP higher. The price gained pace after it broke the $0.525 resistance.

There was a move above the $0.550 and $0.565 resistance levels. Finally, it traded to a new multi-week high at $0.5859. Recently, there was a downside correction below the $0.575 level. The price declined below the 23.6% Fib retracement level of the upward move from the $0.4778 swing low to the $0.5859 high.

The price is now trading above $0.525 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $0.5520 on the 4-hour chart of the XRP/USD pair.

Source: XRPUSD on TradingView.com

On the upside, immediate resistance is near the $0.563 level. A close above the $0.563 level could send the price toward the $0.585 resistance. If the bulls remain in action above the $0.585 resistance level, there could be a drift toward the $0.620 resistance. Any more gains might send XRP toward the $0.645 resistance.

If XRP fails to clear the $0.563 resistance zone, it could continue to move down. Initial support on the downside is near the $0.5520 zone and the trend line.

The next major support is at $0.532 or the 50% Fib retracement level of the upward move from the $0.4778 swing low to the $0.5859 high. If there is a downside break and a close below the $0.532 level, The price might accelerate lower. In the stated case, the price could retest the $0.505 support zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $0.552, $0.532, and $0.505.

Major Resistance Levels – $0.563, $0.585, and $0.620.

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