Ripple extended its rally and traded towards the $0.2250 resistance against the US Dollar. Recently, XRP corrected sharply, but bitcoin managed to pop above $8,000 and $8,200.
- Ripple price is trimming gains and it even dived to test the $0.2080 support against the US dollar.
- Bitcoin remained in a positive trend and it surged above the key $8,000 resistance.
- There is a major contracting triangle forming with support near $0.2090 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could dip sharply towards the $0.2050 support before it starts a fresh increase.
Ripple Price Remains Supported
Yesterday, we saw a sharp rise in ripple above the $0.2120 resistance against the US Dollar. XRP price even surged above $0.2200, formed a high at $0.2253, and recently started a substantial downside correction.
On the other hand, there were strong gains in bitcoin above $8,000 and $8,200. BTC surged towards the $8,500 level and it is currently correcting lower.
Looking at ripple, there was a downturn below the $0.2200 support area. Besides, the price traded below the 50% Fib retracement level of the upward move from the $0.1937 low to $0.2253 high.
Finally, the price dipped below $0.2100 and tested the $0.2080 support area. It seems like there is a major contracting triangle forming with support near $0.2090 on the hourly chart of the XRP/USD pair.
The current price action suggests that there are chances of another downside thrust below the $0.2100 level. The main support is near the $0.2050 level and the 100 hourly simple moving average.
An intermediate support is near the 61.8% Fib retracement level of the upward move from the $0.1937 low to $0.2253 high. If there is another dip below $0.2100, the bulls are likely to protect the $0.2050 support area. Any further losses might lead the price towards the crucial $0.2000 pivot level.
Dips Present Buying Opportunity?
If ripple dives again below $0.2100, it could be considered as a decent buying opportunity. The $0.2050 support holds the key for the current uptrend and bullish case. Only if the price breaks the $0.2000 support, there are chances of a trend change to bearish.
Looking at the chart, ripple price is trimming gains, but it seems like recently formed uptrend is not over yet unless there is a close below $0.2000. On the upside, the price is likely aim a test of $0.2400.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently just below the 50 level.
Major Support Levels – $0.2100, $0.2080 and $0.2050.
Major Resistance Levels – $0.2180, $0.2200 and $0.2250.
