Ripple is showing signs of a decent recovery above $0.1400 against the US Dollar. XRP price could attempt to surpass the $0.1650 resistance and start a strong rise.
- Ripple price is facing a couple of key hurdles near $0.1620 and $0.1650 against the US dollar.
- A key support base seems to be forming near the $0.1400 area.
- There is an important contracting triangle forming with resistance near $0.1650 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price might attempt to start a strong rise above the $0.1600 and $0.1650 resistance levels.
Ripple Price Forming Support Base
After crumbling towards the $0.1150 area, ripple started an upside correction. XRP price recovered above the $0.1250 and $0.1400 resistance levels to start a decent recovery.
There was a clear break above the 23.6% Fib retracement level of the main drop from the $0.2102 high to $0.1166 low. However, the price is facing a strong resistance near the $0.1600 area and the 100 hourly simple moving average.
The 50% Fib retracement level of the main drop from the $0.2102 high to $0.1166 low is also acting as a key hurdle for the bulls. More importantly, there is an important contracting triangle forming with resistance near $0.1650 on the hourly chart of the XRP/USD pair.
It seems like there is a major breakout zone forming near the $0.1600 area. If there is an upside break above the $0.1620 and $0.1650 resistance levels, there are chances of a strong rise in the near term.
The next key resistance is near the $0.1750 area, plus the 61.8% Fib retracement level of the main drop from the $0.2102 high to $0.1166 low.
Breakdown Zone
If ripple price struggles to clear the $0.1600 resistance, it could start another decline. On the downside, an initial support is near the $0.1450 level. The first major support is near the $0.1385 area, below which the bears are likely to take control.
In the mentioned bearish scenario, the price is likely to revisit the $0.1200 support area in the coming sessions. Any further losses are likely to open the doors for more downsides towards $0.1100.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is still below the 50 level.
Major Support Levels – $0.1450, $0.1400 and $0.1380.
Major Resistance Levels – $0.1600, $0.1620 and $0.1650.
