Ripple initiated a downward correction below $ 0.6500 against the US dollar. The XRP price is likely gearing up for the next big move, similar to bitcoin and ETH.
- Ripple was corrected to the downside but remained stable above $ 0.6000 against the US dollar.
- The price is struggling to gain $ 0.6500 but is well above the simple moving average of 100 (4 hours).
- A major contraction triangle with resistance at $ 0.6340 is forming on the 4-hour chart of the XRP / USD pair (data source Kraken).
- The pair is likely to move above $ 0.6500 and $ 0.6800 as long as it is above the support of $ 0.5500.
Ripple’s XRP price holds key supports
After trading as low as $ 0.4566, ripple’s XRP price started a new rise above $ 0.5500. The bitcoin price rallied above $ 19,000 and ETH broke the $ 600 resistance.
XRP is now struggling to break out of the $ 0.6350 and $ 0.6500 resistance levels. The last swing high formed near $ 0.6896 before the price dropped below $ 0.6000. It tested the 50% Fib retracement level of the upward move from the low of $ 0.4566 to the high of $ 0.6896.
The price remained well offered above $ 0.5750 and recovered higher. It is now trading well above the $ 0.6000 support and the 100 simple moving average (4 hours).
Source: XRPUSD on TradingView.com
More importantly, a major contracting triangle is forming with a resistance at $ 0.6340 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 low of $ 0.4566 to the high of $ 0.6896.
If a break to the upside above the resistance of the triangle occurs, the price may attempt to break out of the $ 0.6500 resistance level. A positive close above the $ 0.6500 resistance could push the price up towards the $ 0.7000 resistance level over the next 3-4 days.
Downsides break in XRP?
If Ripple fails to break out of the resistance levels of $ 0.6340 and $ 0.6500, it may slowly decline. Initial bearish support is near the $ 0.6000 level.
The first major support is now forming near the $ 0.5750 level. The main support is near the $ 0.5500 level, below which the price could even struggle to stay above the 100 (4-hour) simple moving average.
4-hour MACD – The MACD for XRP / USD is losing pace in the bearish zone.
4-hour RSI (relative strength index) – The RSI for XRP / USD is currently just below the 50 level.
Main support levels: $ 0.6000, $ 0.5750 and $ 0.5500.
Major resistance levels: $ 0.6340, $ 0.6500 and $ 0.7000.