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- Ripple price trimmed losses after it traded as low as $ 0.2336 against the US dollar.
- The price is currently trading above the $ 0.2500 pivot level with a few positive signs.
- A major contracting triangle pattern is with resistance near $ 0.2670 on the hourly chart of the XRP / USD pair (data source from Kraken).
- The pair is likely to recover towards the $ 0.2800 resistance as long as it is above the $ 0.2500 support.
Ripple is showing signs of decent recovery against the US Dollar, while bitcoin recovered 3%. XRP price must stay above the $ 0.2500 support area to continue its upside.
Ripple Price Analysis
Yesterday, there was a strong decline in the Ethereum, bitcoin and ripple price against the US Dollar. The XRP / USD pair declined sharply below the $ 0.2800 and $ 0.2500 support levels. Finally, the price settled below the 100 hourly simple moving average and a low swing was formed at $ 0.2336. Recently, the price started at decent recovery and climbed above the $ 0.2400 and $ 0.2500 levels.
Moreover, there was a break above the 23.6% fib retracement level of the downward move from the $ 0.3088 However, the price is facing a strong resistance near the $ 0.2650 and $ 0.2700 levels. More importantly, the 50% fib retracement level of the downward move from the $ 0.3088 swing high to $ 0.2336 swing low is acting as a hurdle.
At the moment, there is a major contracting triangle pattern with resistance near $ 0.2670 on the hourly chart of the XRP / USD pair. If there is an upside break above the $ 0.2670 and $ 0.2700 resistances, ripple price could continue to recover. The next key resistance is near the $ 0.2850 level and the 100 hourly SMA. If there were more gains, the price could test the $ 0.3000 resistance area.
Conversely, if there is a bearish break below the $ 0.2550 and $ 0.2500 support levels, the price could resume its decline. An immediate support below $ 0.2500 is near $ 0.2400. If the price fails to stay above $ 0.2400 or $ 0.2350, there could be a sharp drop towards the $ 0.2200 support area.
Looking at the chart, ripple is facing uphill task near the $ 0.2650 and $ 0.2700 levels. However, the current price action suggests that the price would climb higher towards $ 0.2800 and $ 0.2850. If not, there is a risk of another decline below the $ 0.2500 support area in the near term.
Technical Indicators
Hourly MACD – The MACD for XRP / USD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP / USD is currently moving lower towards the 40 level.
Major Support Levels – $ 0.2550, $ 0.2500 and $ 0.2400.
Major Resistance Levels – $ 0.2670, $ 0.2700 and $ 0.2800.
