- Ripple price extended gains and traded towards the $0.3250 resistance area against the US dollar.
- The price is currently correcting sharply and is trading below the $0.3000 support area.
- There was a break below a key bullish trend line with support at $0.3050 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price is likely to find a strong support near the $0.2840 and $0.2800 levels in the near term.
Ripple price is correcting gains from the recent high against the US Dollar and bitcoin. XRP price could retest the $0.2800 support area before a fresh increase.
Ripple Price Analysis
Yesterday, we saw a massive rally in ripple price above the $0.3000 resistance against the US Dollar. The XRP/USD pair even broke the $0.3120 resistance and posted a new monthly high. A swing high was formed near $0.3272 before the price started a downside correction. There was a sharp decline below the $0.3150 and $0.3050 support levels to start the current correction.
Additionally, there was a break below the 23.6% Fib retracement level of the last major rally from the $0.2562 low to $0.3272 high. More importantly, there was a break below a key bullish trend line with support at $0.3050 on the hourly chart of the XRP/USD pair. The pair is now trading close to the 50% Fib retracement level of the last major rally from the $0.2562 low to $0.3272 high.
The next key support is near the $0.2850 and $0.2840 levels. Moreover, the 61.8% Fib retracement level of the last major rally from the $0.2562 low to $0.3272 high is near the $0.2835 level. Therefore, the price is likely to find a decent buying interest if it reaches close to the $0.2800 support area. If there are more downsides, the next major support is near the $0.2650 level (the previous resistance area).
On the upside, an immediate resistance is near the $0.3000 level. There is also a connecting bearish trend line forming with resistance near $0.3050 on the same chart. If there is an upside break above the $0.3050 resistance, the price could resume its uptrend. The next key resistances are near the $0.3200 and $0.3250 levels.
Looking at the chart, ripple price is declining sharply and trimming gains below $0.3000. However, the $0.2850 and $0.2800 support levels are likely to stop the current decline in the near term.
Hourly MACD – The MACD for XRP/USD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently declining and is well below the 50 level.
Major Support Levels – $0.2850, $0.2800 and $0.2650.
Major Resistance Levels – $0.3000, $0.3050 and $0.3200.
Author: Aayush Jindal