Key Highlights
- Ripple price formed a short-term top at $0.9615 and started a downside correction against the US dollar.
- There was a break below a connecting bullish trend line with support at $0.8850 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is moving lower and it seems like it could test the last swing low at $0.8050-0.8000.
Ripple price is correcting lower against the US Dollar and Bitcoin. XRP/USD may continue to correct lower and it could retest the $0.8000 support area.
Ripple Price Downside Correction
There was another attempt to move past $0.9600, but Ripple price failed to gain momentum against the US Dollar. The price traded as high as $0.9615 and later started a downside correction. It declined and broke the 23.6% Fib retracement level of the last wave from the $0.8110 low to $0.9615 high. Moreover, there was a break below the $0.9000 support and the 100 hourly simple moving average.
More importantly, there was a break below a connecting bullish trend line with support at $0.8850 on the hourly chart of the XRP/USD pair. The pair even broke the 61.8% Fib retracement level of the last wave from the $0.8110 low to $0.9615 high. Therefore, there are high chances of it extending declines towards the last swing low of $0.8110. However, the most important support is close to $0.8050 and $0.8000. Buyers are likely to take a stand near the $0.8000 support if the price continues to correct lower in the short term.
Looking at the chart, the broken support near $0.8850 and the 100 hourly SMA is likely to act a resistance. A push above the $0.8850 and $0.9000 resistance levels may perhaps spark a push towards $0.9500.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD has moved back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.
Major Support Level – $0.8000
Major Resistance Level – $0.9000