Ripple Price Analysis: XRP’s Previous Support Now Resistance

  • Ripple price failed to stay above the $0.3000 support and declined heavily below $0.2900 against the US dollar.
  • Yesterday’s highlighted important bearish trend line is in place with resistance at $0.2980 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair recovered nicely after trading as low as $0.2777, but it is facing sellers near $0.2950.

Ripple price declined sharply and gained bearish momentum against the US Dollar and Bitcoin. XRP/USD is currently facing a solid resistance near previous supports at $0.2950.

Ripple Price Analysis

Yesterday, we saw the start of a major decline below the $0.3100 support in ripple price against the US Dollar. The XRP/USD pair even failed to stay above the $0.3000 support and extended its decline. It broke the $0.2950 and $0.2920 support levels. The drop was sharp and sellers pushed the price below $0.2800. A low was formed at $0.2777 and the price placed itself well below the 100 hourly simple moving average. Later, there was a sharp bounce and recovery above the $0.2850 level.

The price traded above the 50% Fib retracement level of the recent drop from the $0.3071 high to $0.2777 low. However, the upside move was capped by the previous support near $0.2950. Moreover, the 61.8% Fib retracement level of the recent drop from the $0.3071 high to $0.2777 low acted as a resistance. More importantly, yesterday’s highlighted important bearish trend line is in place with resistance at $0.2980 on the hourly chart of the XRP/USD pair. Therefore, as long as the price is below the $0.2950 and $0.3000 levels, it remains in a downtrend. On the downside, an initial support is at $0.2880, followed by $0.2840.

Looking at the chart, ripple price recovered nicely from the $0.2777 swing low. However, it is struggling to clear the previous key supports just below $0.3000. As long as the price is below $0.3000, there could be more losses.

Technical Indicators

Hourly MACD – The MACD for XRP/USD moved back in the bullish zone, but there are still many bearish signs.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD recovered and settled above the 45 level.

Major Support Level – $0.2840

Major Resistance Level – $0.2980

Source