Ripple (XRP) Lack of Bullish Momentum Could Derail Its Recovery To $0.20

Ripple is slowly correcting higher above the $0.1850 level against the US Dollar. However, XRP price must break the $0.1880 resistance and the 100 hourly SMA to start a strong upward move.

  • Ripple is still trading in a bearish zone below $0.1920 and $0.1880 against the US dollar.
  • The price is currently approaching the $0.1880 resistance and the 100 hourly simple moving average.
  • There was a break above a major declining channel with resistance near $0.1870 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair could start a strong increase if it clears the $0.1900 zone and the 100 hourly SMA.

Ripple Price Lacks Strength

Ripple price remained in a bearish zone and settled below the key $0.1920 pivot level. XRP extended its decline below the $0.1880 support and the 100 hourly simple moving average.

It traded as low as $0.1848 and recently started an upside correction. There was a break above the $0.1860 level, with no major sign of a strong upward move. Having said that, there was a break above a major declining channel with resistance near $0.1870 on the hourly chart of the XRP/USD pair.

The pair is now approaching the $0.1880 resistance and the 100 hourly simple moving average. The 23.6% Fib retracement level of the downward move from the $0.1986 high to $0.1848 low is also near the $0.1880 zone.

XRP price trading above $0.1850: Source: TradingView.com

If ripple succeeds in clearing the $0.1880 resistance, it could even surpass the $0.1900 level. The next major resistance is near the $0.1920 level, which acted as a hurdle on many occasions. It now coincides with the 50% Fib retracement level of the downward move from the $0.1986 high to $0.1848 low.

A successful break above the $0.1920 resistance zone is must for upside continuation towards the $0.1980 and $0.2000 resistance levels in the near term.

Fresh Decline in XRP?

Ripple is clearing lacking in bullish momentum above $0.1850. If it struggles to clear the $0.1880 resistance zone or fails to settle above the 100 hourly SMA, there is a risk of a fresh decline.

An initial support is seen near the $0.1850 level. The main support is at $0.1825, below the price could extend its slide towards $0.1780.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 50 level.

Major Support Levels – $0.1850, $0.1825 and $0.1800.

Major Resistance Levels – $0.1880, $0.1920 and $0.1980.

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Source