Key Highlights
- Ripple price declined heavily and broke the $0.4860 and $0.4400 support levels against the US dollar.
- There is a crucial bearish trend line formed with resistance at $0.4720 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is struggling to recover above the $0.4600 and $0.4700 resistance levels.
Ripple price fell sharply below key levels against the US Dollar and Bitcoin. XRP/USD is correcting higher, but it remains sell on rallies near $0.4700.
Ripple Price Analysis
The past three sessions were destructive as there was a sharp decline from the $0.5100 high in ripple price against the US Dollar. The XRP/USD pair nosedived and broke the $0.5000, $0.4860, $0.4600 and $0.4400 support levels. The price traded close to the $0.4000 level and settled below the 100 hourly simple moving average. The decline found support at $0.4010 and a low was formed at $0.4017.
Later, the price recovered and moved above the $0.4500 level. There was a break above the 23.6% Fib retracement level of the recent drop from the $0.5255 high to $0.4017 low. However, the upside move was protected by the $0.4600 level, which was a support earlier. Besides, the price failed near the 50% Fib retracement level of the recent drop from the $0.5255 high to $0.4017 low. More importantly, there is a crucial bearish trend line formed with resistance at $0.4720 on the hourly chart of the XRP/USD pair. The current market sentiment is bearish and it seems like the price may decline once again towards $0.4200 and $0.4100.
Looking at the chart, ripple price is struggling to recover above $0.4600 and $0.4700. As long as the price is below the $0.4750 pivot level, it could resume it decline in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is slowly recovering in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently near the 40 level.
Major Support Level – $0.4200
Major Resistance Level – $0.4700