Ripple started an upside correction from the $0.2220 support area against the US Dollar. XRP price is now testing $0.2450 and it must surpass $0.2500 for a fresh rally to $0.3000.
- Ripple price is currently recovering above the $0.2320 and $0.2400 levels against the US dollar.
- The price is now facing a couple of key resistances near $0.2450 and $0.2500.
- There is a major bearish trend line forming with resistance near $0.2430 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price could either start a massive rally towards $0.3000 or fail near $0.2500 for a fresh decline.
Ripple Price Facing Key Resistance
Yesterday, we saw a strong decline in ripple below the $0.2350 support area and the 100 hourly simple moving average. XRP price even traded below the $0.2250 support level and formed a new weekly low at $0.2229.
It is currently correcting higher above the $0.2300 and $0.2350 resistance levels. The price also climbed above the 23.6% Fib retracement level of the downward move from the $0.2860 high to $0.2229 swing low.
The current price action is positive, but ripple seems to be facing a couple of key hurdles near the $0.2450 and $0.2500 levels. There is also a major bearish trend line forming with resistance near $0.2430 on the hourly chart of the XRP/USD pair.
Above the trend line, the main resistance is near the $0.2500 area and the 100 hourly simple moving average. The 50% Fib retracement level of the downward move from the $0.2860 high to $0.2229 swing low is near the $0.2540 level to act as a significant resistance.
Therefore, a clear break above the trend line and then a follow up move above the $0.2500 resistance is must to start a strong rally. If ripple settles above the $0.2500 area and the 100 hourly SMA, the price could rise steadily towards $0.2850 and $0.3000 in the coming days.
Another Failure?
If ripple fails to climb above the $0.2450 and $0.2500 resistance levels, there are chances of another downward move. An initial support is near the $0.2350 level.
A successful close below the $0.2350 support level may perhaps restart downtrend. The next key supports on the downside are visible near the $0.2250 and $0.2220 levels.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is slowly moving into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently above the 50 level, with a positive bias.
Major Support Levels – $0.2350, $0.2250 and $0.2220.
Major Resistance Levels – $0.2450, $0.2500 and $0.2540.
