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Ripple retested the $ 0.7500 resistance level before a sharp drop against the US dollar, similar to bitcoin and ETH. XRP’s price holds support at $ 0.5500, but it may even test $ 0.5000.
- Ripple initiated a sharp downward correction after failing to break out of $ 0.7500 against the US dollar.
- The price broke the $ 0.6000 support, but is still well above the 100 (4-hour) simple moving average.
- There has been a break below a key contract triangle with support near $ 0.6465 on the 4-hour chart of the XRP / USD pair (source Kraken).
- The pair could revisit the $ 0.5000 main support before the new rise in the near term.
Ripple’s XRP price approaches key supports
There has been a strong rejection pattern formed in the ripple XRP price near $ 0.7200 and $ 0.7500. The price started a sharp decline and broke many supports near the $ 0.6200 level.
Recently, the cryptocurrency market has seen a sharp correction, with bitcoin and Ethereum falling sharply. XRP also followed a similar trend and fell more than 10% below $ 0.6000. There was also a break below a key contract triangle with support near $ 0.6465 on the 4-hour chart of the XRP / USD pair.
The pair even broke the $ 0.5800 support zone, but is still well above the 100 (4-hour) simple moving average. There has been a break below the 50% Fib retracement level of the upward wave from the $ 0.4085 low swing to the $ 0.7876 high swing.
Source: XRPUSD on TradingView.com
It is now trading near the $ 0.5500 support level. The 61.8% Fib retracement level of the upward wave from the $ 0.4085 low swing to the $ 0.7876 high swing also serves as support.
If there are more losses, the price could drop below the $ 0.5500 and $ 0.5400 levels. The next major support is at $ 0.5000, where the bulls are likely to take a strong stance.
Upsides Limited in XRP?
If ripple stays above the $ 0.5500 support, it could recover higher. An initial resistance to the upside is near the $ 0.5850 and $ 0.6000 levels.
A clear break above the $ 0.6000 resistance level could open the door for a new rise. In the case indicated, the price is likely to steadily rise towards the $ 0.6500 level.
Technical indicators
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 close to the 50 level.
Major Support Levels: $ 0.5500, $ 0.5200, and $ 0.5000.
Major resistance levels: $ 0.5850, $ 0.6000 and $ 0.6500.
