Key Highlights
- Ripple price struggled to move above the $0.8900 and $0.9000 resistance levels and moved down against the US dollar.
- There is a major ascending channel forming with support at $0.8600 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair must stay above the $0.8600 support level to avoid further downsides in the near term.
Ripple price is correcting lower against the US Dollar and Bitcoin. XRP/USD should stay above the $0.8600 to stay in a positive zone for more gains.
Ripple Price Trend
There was a push above the $0.8800 level in Ripple price against the US Dollar. The price gained traction and traded towards the $0.9000 level. However, sellers were able to defend the $0.8900 and $0.9000 levels. A short-term high was formed at $0.8900 before the price started a downside correction. It moved down and traded below the 23.6% Fib retracement level of the last wave from the $0.7815 low to $0.8900 high.
However, there is a crucial support waiting on the downside near the $0.8600 level. There is also a major ascending channel forming with support at $0.8600 on the hourly chart of the XRP/USD pair. If the pair fails to hold the channel support, it could decline further towards the $0.8400 level. Moreover, the 100 hourly simple moving average may perhaps act as a support near $0.8450. Finally, the last important support is near the 50% Fib retracement level of the last wave from the $0.7815 low to $0.8900 high at $0.8360.
Looking at the chart, the pair is struggling to hold the channel support at $0.8600-0.8620. Therefore, there is a risk of an extended correction towards $0.8400. On the flip side, a break above the $0.8800 and $0.8900 levels may eliminate the bearish pressure.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is now in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD has moved below the 50 level.
Major Support Level – $0.8600
Major Resistance Level – $0.8900