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Ripple rallied significantly above $ 0.6000 and $ 0.7000 before correcting down against the US dollar. The price of XRP is now consolidating above $ 0.6200 and expects the next crucial breakout.
- Ripple started a strong rally after stabilizing above the $ 0.3000 resistance against the US dollar.
- The price tested the resistance of $ 0.7500 and stood well above the simple moving average of 100 (4 hours).
- On the 4-hour chart of the XRP / USD pair (data source Kraken) a major contraction triangle is forming with a resistance near $ 0.7000.
- The pair could start a new rally once it breaks out of the $ 0.7000 resistance zone.
Ripple’s XRP Price Holding Key Support
In the latest technical analysis, we discussed the possibilities of a massive ripple XRP price hike towards $ 0.7500. The price has followed a strong bullish path above $ 0.5000 and $ 0.6000.
It overcame many hurdles near $ 0.7000 and stood well above the simple moving average of 100 (4 hours). Finally, the price tested the declared resistance zone of $ 0.7500. A new multi-month high formed near $ 0.7870 before the price began a downward correction.
The XRP price was corrected below $ 0.7000 and $ 0.6500. It also tested the $ 0.6000 support level, but it remained well above the simple moving average of 100 (4 hours). A low swing was formed near $ 0.5662 before the price climbed back to $ 0.7547.
It is currently consolidating over a broad range below the $ 0.7000 level. There was a break below the 50% Fib retracement level of the upward move from the $ 0.5662 low swing to the $ 0.7547 high.
Source: XRPUSD on TradingView.com
It appears that a major contracting triangle is forming with resistance near $ 0.7000 on the 4-hour chart of the XRP / USD pair. The triangle support is near the 61.8% Fib retracement level of the upward move from the $ 0.5662 swing low to the $ 0.7547 high.
If there is a clear break below the triangle support, XRP may revisit the support at $ 0.6000. Any further losses could increase the chances of a break towards the $ 0.5200 level.
New rally in XRP?
If Ripple stays above the triangle support, it could attempt a break to the upside above the $ 0.6800 and $ 0.7000 resistance levels.
A clear break above the triangle resistance is likely to open the door for a new rally towards the $ 0.7500 and $ 0.7650 resistance levels.
Technical indicators
4-hour MACD – The MACD for XRP / USD is losing pace in the bullish zone.
4-hour RSI (relative strength index) – The RSI for XRP / USD is correcting further down towards the 60 level.
Major Support Levels: $ 0.6350, $ 0.6200 and $ 0.6000.
Major resistance levels: $ 0.6800, $ 0.7000 and $ 0.7500.
