Key Highlights
- Ripple price extended its decline and traded towards the $0.5400 level against the US dollar.
- Yesterday’s highlighted important bearish trend line with current resistance at $0.6050 is still in place on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair may correct a few points in the short term, but upsides could be capped by $0.5800 and $0.6000.
Ripple price is in a downtrend against the US Dollar and Bitcoin. Any recoveries and corrections in XRP/USD are likely to hurdles on the upside.
Ripple Price Upside Hurdles
There was no respite for buyers as Ripple price declined further towards the $0.5400 level against the US Dollar. The price settled below the $0.5900 and $0.5800 support levels, resulting in a major downside move. It even traded below the $0.5500 level and a low was formed at $0.5453. At the moment, the price is slowly recovering and moving higher above $0.5500.
An initial resistance is near the 23.6% Fib retracement level of the last decline from the $0.6103 high to $0.5453 low. However, the most important hurdle for buyers is close to $0.5800. It represents the 50% Fib retracement level of the last decline from the $0.6103 high to $0.5453 low. Above this, the 100 hourly simple moving average is positioned near the $0.6000 level to prevent upsides. Moreover, yesterday’s highlighted important bearish trend line with current resistance at $0.6050 is still in place on the hourly chart of the XRP/USD pair.
Looking at the chart, the price may correct a few points above the $0.5600 level. However, ripple buyers could face a tough challenge near $0.5800 and $0.6000. On the downside, a break below the recent low could push the price towards the $0.5200 level in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is recovering in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is moving higher towards the 40 level.
Major Support Level – $0.5500
Major Resistance Level – $0.5800