Key Highlights
- Ripple price after struggling to move above $0.2400 against the US Dollar started a short-term downtrend.
- There is a descending channel forming with resistance at $0.2250 on the hourly chart of XRP/USD (data source from Kraken).
- The upside remains capped with support on the downside near $0.2050.
Ripple price stated a short-term downtrend against the US Dollar and Bitcoin. XRP/USD faces tough resistance near $0.2250 for further gains.
Ripple Price Resistance
Ripple price recovered well recently towards $0.24 against the US Dollar this past week. However, the upside move faced a lot of sellers near the $0.24 area. Later, the price stated declining and moved below the $0.23 level. The price is following a bearish path below $0.23 and the 100 hourly simple moving average. The price declined and tested the $0.2050 support area.
There was a bounce back, but the upside was capped by a descending channel with resistance at $0.2250 on the hourly chart of XRP/USD. The pair is once again attempting a bounce back and trading above the 23.6% Fib retracement level of the last decline from the $0.2280 high to $0.2070 low. An initial resistance is around $0.2200 and the 100 hourly simple moving average.
Ripple
Moreover, the 61.8% Fib retracement level of the last decline from the $0.2280 high to $0.2070 low is also near $0.2200. Above $0.2200, the channel resistance sits at $0.2250. Therefore, if the price continues to correct higher, it is likely to face sellers near $0.2200-0.2250. Only a proper close above $0.2250 would call for a test of $0.24. On the downside, the $0.2050 is a decent short-term support, followed by $0.2000.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is currently placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is moving higher, but remains well below the 50 level.
Major Support Level – $0.2050
Major Resistance Level – $0.2250
Charts courtesy – Trading View, Kraken
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