Key Highlights
- Ripple price started a downside correction after trading above the $0.6200 level against the US dollar.
- There is a key contracting triangle forming with resistance at $0.6050 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair may soon make the next move either above $0.6100 or below $0.5800 in the near term.
Ripple price is preparing for the next move against the US Dollar and Bitcoin. XRP/USD must stay above the $0.5800 level to remain in a positive zone.
Ripple Price Support
After trading above the $0.6200 level, Ripple price faced selling interest against the US Dollar. The price formed a high at $0.6265 and later started a downside correction. It declined below the $0.6100 and $0.6000 support levels. Moreover, there was a break below the 38.2% Fib retracement level of the last wave from the $0.5460 low to $0.6265 high.
There was even a spike below the $0.5850-00 support zone and the 100 hourly simple moving average. However, buyers defended losses below the $0.5800 level and the price recovered. More importantly, the 50% Fib retracement level of the last wave from the $0.5460 low to $0.6265 high acted as a decent support. At the moment, the price is trading in a tiny range near $0.6000 and is preparing for the next move. There is a key contracting triangle forming with resistance at $0.6050 on the hourly chart of the XRP/USD pair.
Looking at the chart, the price seems to be heading towards a key break either above $0.6100 or below $0.5800 in the near term. A push above the $0.6100 level could clear the path for more gains above the $0.6200 level. On the downside, a break below the $0.5800 level may perhaps clear the path for more losses towards $0.5500.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is flat in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is moving higher towards the 55 level.
Major Support Level – $0.5800
Major Resistance Level – $0.6100