Key Highlights
- Ripple price declined heavily and broke the $0.4280 and $0.4000 support levels against the US dollar.
- This week’s followed important bearish trend line played well with resistance at $0.4480 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is under a lot of pressure and it may continue to face sellers near $0.4280 and $0.4400.
Ripple price nosedived into a bearish zone against the US Dollar and Bitcoin. XRP/USD may recover a few points, but upsides remain capped near $0.4280.
Ripple Price Analysis
This week, we followed a bearish pattern below the $0.5000 resistance for Ripple price against the US Dollar. The XRP/USD pair remained in a bearish below $0.5000 and $0.4950 and it recently declined sharply. Sellers came into the action and pushed the price below the $0.4400 and $0.4280 support levels. The drop was nasty as the price even broke the $0.4000 support and settled below the 100 hourly simple moving average.
More importantly, this week’s followed important bearish trend line played well with resistance at $0.4480 on the hourly chart of the XRP/USD pair. A low was formed near the $0.3900 zone and the price later started an upside correction. It is currently testing the 23.6% Fib retracement level of the recent decline from the $0.4744 high to $0.3954 low. An immediate resistance is near the $0.4280-0.4290 zone, which was a support earlier. Above the $0.4280 level, the price may face sellers near $0.4480. It is close to the 50% Fib retracement level of the recent decline from the $0.4744 high to $0.3954 low.
Looking at the chart, ripple price is clearly in a bearish zone below $0.4480. As long as there is no close above $0.4500, it remains at a risk of more declines.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is well below 30 level.
Major Support Level – $0.4000
Major Resistance Level – $0.4480
