Ripple price is under a lot of pressure below $0.5000 against the US Dollar. XRP/USD is likely to accelerate declines towards the $0.4200 and $0.4100 levels.
Key Talking PointsRipple price is in a major downtrend from the $0.4850 resistance zone against the US Dollar. There is a significant bearish trend line in place with resistance at $0.4580 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp). The pair may perhaps continue to move down and it could even break the last low at $0.4243.
During the past few days, there was a sharp increase in selling pressure above $0.4800 in Ripple price against the US Dollar. The XRP/USD pair struggled to settle above the $0.4850 resistance zone, resulting in a bearish reaction
Looking at the chart, the price declined heavily and broke a major support area near $0.4600. It opened the doors for more losses and the price declined below the 76.4% Fib retracement level of the last wave from the $0.4243 low to $0.5194 high.
It means there is a high chance that the price may revisit the $0.4243 low. Moreover, if sellers remain in control, the price may well break the $0.4243 low for a new low. The next target for sellers could the 1.236 Fib extension level of the last wave from the $0.4243 low to $0.5194 high.
If the price corrects higher, an initial resistance is near the $0.4550 level. Above this, the $0.4600 support zone could prevent upsides. There is also a significant bearish trend line in place with resistance at $0.4580 on the 2-hours chart of the XRP/USD pair.
Therefore, upsides are likely to be capped in ripple price above $0.4600 unless there is a shift in the market sentiment to bullish.
In the short term, XRP/USD may trade in a range below the $0.4450 and $0.4500 levels, but there is a risk of more declines below the $0.4243 low in the near term.