Key Highlights
- Ripple price failed to hold the $0.2600 support and moved down against the US Dollar.
- There was a break below yesterday’s highlighted contracting triangle pattern with support at $0.2600 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price might test the $0.2350 support area if the current sentiment remains intact.
Ripple price broke a key support against the US Dollar and Bitcoin. XRP/USD might correct further in the near term towards the $0.2350 level.
Ripple Price Resistance
Yesterday, we discussed that Ripple price is approaching a break either above $0.2640 or below $0.2600 against the US Dollar. The price failed to make an upside move and started declining below $0.2600. It broke yesterday’s highlighted contracting triangle pattern with support at $0.2600 on the hourly chart of the XRP/USD pair. It opened the doors for more losses below $0.2550.
The worst part was a close below $0.2500 and the 100 hourly simple moving average. The price has moved below the $0.2500 handle and traded towards $0.2400. It might correct a few points higher towards $0.2460. An initial resistance is around the 23.6% Fib retracement level of the last decline from the $0.2660 high to $0.2400 low near $0.2460. Above $0.2460, the 50% Fib retracement level of the last decline from the $0.2660 high to $0.2400 low at $0.2530 would act as a hurdle.
Moreover, the triangle resistance trend line is at $0.2600, which might continue to stop the upside move. On the downside, there are chances that the price could test $0.2350. Below the last, the price could even test the $0.2300 handle in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is now placed well into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is heading towards the extreme oversold levels.
Major Support Level – $0.2350
Major Resistance Level – $0.2550
Charts courtesy – Trading View, Kraken
