- Ripple price is currently correcting from the new monthly low of $0.2005 against the US dollar.
- The price might correct further higher, but the $0.2270 resistance is a crucial hurdle for buyers.
- There is a major bearish trend line forming with resistance near $0.2205 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price is likely to resume its decline if it fails to climb above $0.2250 and $0.2270.
Ripple price is trading with a short term positive bias against the US Dollar, while bitcoin rallied 8%. However, XRP price is still in downtrend unless it breaks $0.2270 and $0.2350.
Ripple Price Analysis
Yesterday, we saw another drop in ripple below the $0.2250 and $0.2120 support levels against the US Dollar. Moreover, XRP/USD settled below the $0.2250 level and the 100 hourly simple moving average.
Finally, it traded to a new multi-month low at $0.2005 before the price started an upside correction. It climbed more than 5% and surpassed the $0.2120 and $0.2150 resistance levels.
Besides, the price spiked above 50% Fib retracement level of the downward move from the $0.2350 high to $0.2005 low. The bulls even pushed the price above the $0.2220 level, but they faced a strong resistance near the $0.2250 level.
A high was formed near $0.2250 and ripple price is currently trimming gains. It traded below the $0.2220 and $0.2200 levels. Additionally, there was a break below the 23.6% Fib retracement level of the recent wave from the $0.2005 low to $0.2250 high.
On the downside, there is a major support forming near the $0.2120 level. It also represents the 50% Fib retracement level of the recent wave from the $0.2005 low to $0.2250 high.
Therefore, the price might find bids near $0.2130 and $0.2120. If the bulls fail to protect $0.2120, the price is likely to resume its decline and revisit the $0.2000 support area.
Conversely, the price could make another attempt to clear the $0.2250 resistance area. More importantly, there is a major bearish trend line forming with resistance near $0.2205 on the hourly chart of the XRP/USD pair.
Thus, the bulls are clearly facing a lot of hurdles, starting with $0.2205 and up to $0.2270. The main resistance is near the $0.2350, above which the price could turn bullish.
Looking at the chart, ripple price is likely to continue higher, but the bears will most likely protect an upside break above $0.2250 and $0.2270.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is about to move into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently near the 50 level.
Major Support Levels – $0.2150, $0.2120 and $0.2000.
Major Resistance Levels – $0.2205, $0.2250 and $0.2270.
