Key Highlights
- Ripple price extended slides and traded below the $0.4300 support level against the US dollar.
- There is a new connecting bearish trend line formed with resistance near $0.4325 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is currently trading near a major support area at $0.4250, which holds a lot of importance.
Ripple price tumbled further against the US Dollar and Bitcoin. XRP/USD must hold the $0.4250 support to avoid more declines towards the $0.4000 level.
Ripple Price Support
There was no recovery above the $0.4450 level in Ripple price against the US Dollar. The XRP/USD pair extended its decline and broke the $0.4400 and $0.4300 support levels. The decline was such that the price is now trading well below the $0.4400 level and the 100 hourly simple moving average. However, the price is currently testing a significant support near $0.4250, which acted as a barrier for sellers on many occasions.
On the upside, an initial resistance is near the 23.6% Fib retracement level of the last decline from the $0.4562 high to $0.4266 low. Moreover, there is a new connecting bearish trend line formed with resistance near $0.4325 on the hourly chart of the XRP/USD pair. Above this trend line, the price may perhaps recover towards the $0.4400 level. The next resistance is close to the 50% Fib retracement level of the last decline from the $0.4562 high to $0.4266 low. Finally, the previous support at $0.4500 is likely to act as a strong resistance for buyers.
Looking at the chart, the price is losing bearish momentum near $0.4250, which is a positive sign. Therefore, as long as the price is above $0.4250, it is likely to recover. Below this, the next support is near the $0.4000 level.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is slowly moving back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently near the 40 level and is recovering.
Major Support Level – $0.4250
Major Resistance Level – $0.4400
