Key Highlights
- Ripple price formed a high near the $0.4000 level and later declined against the US dollar.
- There was a break below a major connecting bullish trend line with support at $0.3610 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is currently under pressure and it could decline towards the $0.3380 or 0.3300 support.
Ripple price started a downside correction against the US Dollar and Bitcoin. XRP/USD may continue to correct lower towards the $0.3300 support in the near term.
Ripple Price Analysis
After forming a high near the $0.4000 level, ripple price started a downside move against the US Dollar. The XRP/USD pair traded below the $0.3800 and $0.3750 support levels to enter a short term bearish zone. Later, the pair even broke the $0.3650 support and the 100 hourly simple moving average. The decline was such that the price broke the 61.8% Fib retracement level of the last wave from the $0.3304 low to $0.40005 high.
More importantly, there was a break below a major connecting bullish trend line with support at $0.3610 on the hourly chart of the XRP/USD pair. The pair is currently trading with a bearish angle below $0.3650 and the 100 hourly SMA. An immediate support is near $0.3460 and the 76.4% Fib retracement level of the last wave from the $0.3304 low to $0.40005 high. Below $0.3460, the price is likely to test the $0.3380 support area. Finally, the main support is near the last swing low at $0.3300.
Looking at the chart, ripple price is facing a solid resistance near the $0.3650 level and the 100 hourly SMA. Therefore, to move into a positive zone, a close above $0.3650 and $0.3700 is required.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is now placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 40 level.
Major Support Level – $0.3380
Major Resistance Level – $0.3700
