Ripple Price Analysis: XRP breakdown could continue to $0.4 amid a worsening technical picture

Ripple has been rejected from last week’s high of $0.65. This is the first time the cross-border token has significantly retreated after the recovery from $0.35 (primary support). If the bearish picture remains intact, XRP’s downtrend will explore downhill levels toward $0.4.

Meanwhile, Ripple is trading at $0.54 amid a strengthening bearish grip. A couple of tentative support areas have been lost, including $0.6 and the 61.8% Fibonacci level taken between the last drop from $0.76 to a low of $0.34.

Currently, the 50 Simple Moving Average (SMA) on the 4-hour chart provides immediate support in conjunction with the 50% Fibonacci level. Therefore, this support zone must be defended at all costs; otherwise, XRP will start to extend the bearish leg towards $0.4.

The Moving Average Convergence Divergence has reinforced the pessimistic outlook. It follows the indicator’s rejection from highs of 0.037. Additionally, the MACD line (blue) crossed below the signal line, signaling that a breakdown was in the offing. If the MACD line divergence and the signal line continue to expand, we can expect XRP to drop further down.

The 100 SMA on the same 4-hour chart and the 38.2% Fibo are in line to provide support, which might avert the losses towards $0.4.

XRP/USD 4-hour chart

A comprehensive look at the 4-hour chart shows that XRP will renew the bullish trend if the support provided by the 50 SMA and the 61.8% Fibo is defended. Trading above this crucial level will call out to investors to rejoin the market, confident that Ripple can rise above $0.65 and propel itself toward $1.

Ripple intraday levels

Spot rate: $0.55

Percentage change: -6.4

Relative change: -0.037

Trend: Bearish

Volatility: Growing

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