- Ripple price is down 5% and it broke the key $0.2420 support area against the US dollar.
- The price tagged the $0.2350 support area and it is currently correcting higher.
- There is a new bearish trend line forming with resistance near $0.2450 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price remains at a risk of more losses as long as it is below $0.2580.
Ripple price is now trading below key supports against the US Dollar and bitcoin. XRP price might continue to face sellers near the $0.2480 and $0.2500 resistance levels.
Ripple Price Analysis
In the past three sessions, there was a sharp decline in bitcoin price below the $7,800 support, resulting in a downward push in ripple and Ethereum against the US Dollar. XRP/USD failed to stay above the $0.2450 and $0.2420 support levels, and declined heavily.
Moreover, the price broke the $0.2400 support area and settled well below the 100 hourly simple moving average. Finally, the price tested the $0.2350 support area and a low was formed near $0.2347.
Recently, the price started an upside correction above the $0.2400 resistance area. Besides, there was a break above the 50% Fib retracement level of the recent drop from the $0.2526 high to $0.2347 low.
However, the previous support near the $0.2450 and $0.2460 levels is currently acting as a resistance. Additionally, the 61.8% Fib retracement level of the recent drop from the $0.2526 high to $0.2347 low is also near the $0.2458 level.
More importantly, there is a new bearish trend line forming with resistance near $0.2450 on the hourly chart of the XRP/USD pair. Therefore, ripple price might struggle to clear the $0.2450 and $0.2460 resistance levels.
Should there be an upside break above the $0.2460 resistance, the price could test the $0.2500 area and the 100 hourly SMA. The main resistance for a trend change is near the $0.2580 level.
On the downside, an initial support is near the $0.2400 level. If the price fails to stay above $0.2400, it will most likely continue lower towards the $0.2350 support area.
Looking at the chart, ripple price is clearly positioned in a downtrend below the $0.2450 level. As long as the bears remain in action and the price is below $0.2500, there could be more downsides in the near term.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is struggling to remain in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently just above the 40 level, with a minor bullish angle.
Major Support Levels – $0.2400, $0.2360 and $0.2350.
Major Resistance Levels – $0.2450, $0.2460 and $0.2500.
