- Ripple price is down close to 10% and it even traded close to the $0.2000 support against the US dollar.
- The price is currently correcting higher, but it is likely to struggle near $0.2180 and $0.2250.
- There is a key bearish trend line forming with resistance near $0.2250 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 recover above the $0.2250 resistance.
Ripple Price Analysis
In the past few sessions, there was a nasty drop in ripple below the $0.2350 and $0.2250 support levels against the US Dollar. Moreover, XRP/USD declined more than 10% and recently tested the main $0.2000 support level.
Finally, a new multi-month low was formed near $0.2003 and the price settled well below the 100 hourly simple moving average. It is currently correcting higher above the $0.2050 and $0.2080 resistance levels.
Besides, the price traded above the 23.6% Fib retracement level of the recent decline from the $0.2349 high to $0.2003 low. However, there are many resistances on the upside, starting with the $0.2180 level.
The 50% Fib retracement level of the recent decline from the $0.2349 high to $0.2003 low is also near the $0.2180 level to act as a resistance. Additionally, there is a key bearish trend line forming with resistance near $0.2250 on the hourly chart of the XRP/USD pair.
Above the trend line resistance, ripple price might attempt a decent recovery. The next key resistance is near the $0.2350 level and the 100 hourly simple moving average.
Therefore, the price must settle above the $0.2350 resistance and the 100 hourly simple moving average to move into a positive zone. Conversely, the price might struggle to climb above $0.2250 and it could resume its decline.
An initial support on the downside is near the $0.2050 level. The main support is near the $0.2000 level, below which there is a risk of a drop towards the $0.1950 support area.
Looking at the chart, ripple price is currently correcting higher, but it is approaching a couple of important resistances near the $0.2180 and $0.2250 level, where sellers are likely to emerge again.
Hourly MACD – The MACD for XRP/USD is still placed heavily in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well near the oversold levels.
Major Support Levels – $0.2050, $0.2020 and $0.2000.
Major Resistance Levels – $0.2150, $0.2180 and $0.2250.