Key Highlights
- Ripple price failed to hold an important support at $0.4270 and declined against the US dollar.
- There is a new connecting bearish trend line formed with resistance at $0.4270 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair may correct a few points, but the broken supports at $0.4200 and $0.4270 could prevent gains.
Ripple price moved into a bearish zone against the US Dollar and Bitcoin. XRP/USD broke a significant support at $0.4270 to accelerate losses.
Ripple Price Decline
There was a sharp increase in selling pressure above $0.4350 in Ripple price against the US Dollar. The XRP/USD pair failed to move above the $0.4400 resistance area and declined. It broke a few important supports like $0.4270 and $0.4200. The price declined sharply and traded close to the $0.4000 level. A low was formed at $0.4028 before the price started consolidating losses.
An initial resistance on the upside is the 23.6% Fib retracement level of the last drop from the $0.4364 high to $0.4028 low. Above this, the price may trade towards the $0.4200 level, which is an important resistance. Moreover, there is a new connecting bearish trend line formed with resistance at $0.4270 on the hourly chart of the XRP/USD pair. The previous supports at $0.4200 and $0.4270 are likely to act as hurdles for buyers if the price moves higher. Lastly, the 61.8% Fib retracement level of the last drop from the $0.4364 high to $0.4028 low at $0.4236 is also a key resistance.
Looking at the chart, ripple price made U-turn and it seems like it could decline further below $0.4000. Only a close back above the $0.4250 and $0.4270 levels could push the price back in a positive zone.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently recovering from the oversold levels.
Major Support Level – $0.4000
Major Resistance Level – $0.4195
