- Ripple price declined sharply after it broke the $0.2650 and $0.2500 supports against the US dollar.
- The price is down more than 10% and it recently traded close to the $0.2050 level.
- Yesterday’s highlighted declining channel was breached with support near $0.2620 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price is currently correcting higher, but it is facing hurdles near $0.2450 and $0.2550.
Ripple Price Analysis
In the past two analysis, we discussed the importance of the $0.2650 support for ripple price against the US Dollar. The XRP/USD pair failed to hold the $0.2650 support, resulting in a sharp decline. The pair declined more than 15% and broke many supports, including $0.2550, $0.2500, $0.2400 and $0.2200. Moreover, there was a close below the $0.2500 level and the 100 hourly simple moving average.
Additionally, yesterday’s highlighted declining channel was breached with support near $0.2620 on the hourly chart of the XRP/USD pair. Finally, the price traded close to the $0.2050 level and formed a new monthly low at $0.2064. It is currently correcting higher above the $0.2100 and $0.2200 levels. Moreover, there was a break above the 23.6% Fib retracement level of the recent slide from the $0.2729 high to $0.2064 low.
At the moment, the price is trading near the $0.2400 level. The 50% Fib retracement level of the recent slide from the $0.2729 high to $0.2064 low is also near $0.2400. On the upside, an immediate resistance is near the $0.2450 level. If there is an upside break above $0.2450, the price could recover towards the $0.2550 resistance area. Any further gains might push the price back into a positive zone above $0.2650.
Conversely, if the price fails to continue above $0.2450 or $0.2550, it is likely to resume its downward move. An immediate support is near the $0.2350 level, below which the price might test the $0.2200 support area. If the price fails to stay above $0.2200, it is likely to test the $0.2000 support area in the near term.
Looking at the chart, ripple price is clearly rebounding nicely above $0.2350. Having said that, the price must move back above $0.2450 and $0.2550 to decrease the bearish pressure and start a fresh increase.
Hourly MACD – The MACD for XRP/USD is likely moving back into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting higher towards the 40 level.
Major Support Levels – $0.2350, $0.2200 and $0.2120.
Major Resistance Levels – $0.2450, $0.2550 and $0.0.2650.
Author: Aayush Jindal