Key Highlights
- Ripple price extended gains and traded towards the $0.4000 resistance area against the US dollar.
- There is a major bullish trend line in place with support at $0.3450 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair corrected lower recently, but it remained well supported near $0.3400-0.3500.
Ripple price is placed nicely in an uptrend against the US Dollar and Bitcoin. XRP/USD recently traded close to $0.4000 before a downside correction to the $0.3400 support.
Ripple Price Analysis
Yesterday, we discussed the chances of more gains towards $0.3850 or $0.4000 in ripple price against the US Dollar. The XRP/USD pair did trade higher and broke the $0.3850 resistance area. It traded close to the $0.4000 level and formed a new weekly high at $0.3947. Later, the price started a downside correction and traded below $0.3900 and $0.3800. There was a break below the 50% Fib retracement level of the last wave from the $0.3141 low to $0.3947 high.
However, the decline was protected by the $0.3440 zone, which was a major resistance earlier. More importantly, there is a major bullish trend line in place with support at $0.3450 on the hourly chart of the XRP/USD pair. Besides, the 61.8% Fib retracement level of the last wave from the $0.3141 low to $0.3947 high acted as a support. At the outset, it seems like the price is trading nicely above the trend line and the $0.3440 support.
Looking at the chart, ripple price could resume its upward move towards $0.3700 or $0.3800. Above $0.3800, it could revisit $0.4000. However, it must stay above the $0.3400 support. If not, there is a risk of more losses towards the $0.3180 level and the 100 hourly simple moving average.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently flat near the 50 level.
Major Support Level – $0.3400
Major Resistance Level – $0.3800
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