Ripple rallied around 20% and it broke the key $0.3000 resistance against the US Dollar. XRP price is now approaching the $0.3400-$0.3500 resistance, where it could face a strong selling interest.
- Ripple price surged above $0.3000 and $0.3200 to move into an uptrend against the US dollar.
- The price is up close to 20% and it tested the $0.3400 resistance area.
- Earlier, there was a break above a major bearish trend line with resistance near $0.2460 on the daily chart of the XRP/USD pair (data source from Kraken).
- The main hurdle for the bulls is near the $0.3500 area (a multi touch zone and a key pivot area).
Ripple Price Rally Facing Hurdles
After forming a support base above $0.1800, ripple started a strong rise in Jan 2020 against the US Dollar. XRP broke many hurdles near $0.2000 and $0.2200 to move into a positive zone.
More importantly, the bulls were able to lead the price above the $0.2400 resistance area and the 100-day simple moving average. It opened the doors for more gains above the $0.2500 resistance.
Besides, there was a break above a major bearish trend line with resistance near $0.2460 on the daily chart of the XRP/USD pair. Finally, ripple surged more than 20% in the past three days and broke many important hurdles, including $0.3000.
Besides, there was a break above the 76.4% Fib retracement level of the key downward move from the $0.3143 high to $0.1726 low. It is now trading nicely above the $0.3143 swing high.
However, there is a strong resistance waiting on the upside near $0.3500 (a multi touch zone and a key pivot area). Additionally, the 1.236 Fib extension level of the key downward move from the $0.3143 high to $0.1726 low is near $0.3480.
Therefore, ripple price is likely to face a strong selling interest near the $0.3500 resistance area. If the bulls overcome $0.3500, it could open the gates for a push towards $0.4000 in the coming days.
Resistance Turned Support
If there is a downside correction, ripple remains well supported near the $0.3150 level (the recent breakout resistance zone).
The main support is now near the $0.3000 area, below which there is a risk of a larger downside correction towards the $0.2680 level. Overall, the price is approaching a significant resistance at $0.3500, where the bulls are likely to struggle.
Daily MACD – The MACD for XRP/USD is gaining momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 60 level.
Major Support Levels – $0.3150, $0.3000 and $0.2680.
Major Resistance Levels – $0.3400, $0.3500 and $0.4000.
Author: Aayush Jindal