Ripple again tested the USD 0.7500 resistance level before plunging sharply against the US dollar, similar to bitcoin and ETH. XRP price is holding the USD 0.5500 support, but it could even test USD 0.5000.
- Ripple started a strong downward correction after failing to settle USD 0.7500 against the US dollar.
- The price broke the USD 0.6000 support, but it is still well above the simple 100 (4-hour) moving average.
- There was a break below a major contractile triangle with support near USD 0.6465 on the XRP / USD pair’s 4 hour chart (Kraken data source).
- The pair may revisit the USD 0.5000 main support for the fresh near-term gains.
Ripple’s XRP price approaching key support
A strong rejection pattern had formed in ripple XRP price near USD 0.7200 and USD 0.7500. The price began to fall sharply and broke many is nearly supporting the USD 0.6200 level.
Recently, the crypto market saw a sharp correction, with a sharp drop in bitcoin and Ethereum. XRP also followed a similar pattern, declining more than 10% below USD 0.6000. There was also a break below a major contracting triangle with support at $ 0.6465 on the XRP / USD pair’s 4-hour chart.
The pair even broke the USD 0.5800 support zone, but it is still well above the easy 100 (4-hour) moving average. There was a break below the 50% Fib retracement level of the upward wave from the $ 0.4085 swing low to $ 0.7876 swing high.
Source: XRPUSD on TradingView.com
It is now trading near the USD 0.5500 support level. The 61.8% Fib retracement level of the upward wave from the $ 0.4085 swing low to $ 0.7876 swing high is also acting as a support.
If there are more losses, the price could drop below USD 0.5500 and USD 0.5400. The next big support is at USD 0.5000, where the bulls are likely to take a strong position.
Benefits limited in XRP?
If the ripple remains above the USD 0.5500 support, it may recover higher. An initial resistance on the upside is near the USD 0.5850 and USD 0.6000 levels.
A clear break above the USD 0.6000 resistance level could open the doors for fresh gains. In the case mentioned, the price is likely to rise steadily towards the USD 0.6500 level.
4-Hours MACD – The MACD for XRP / USD is losing pace in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for XRP / USD is currently close to the 50 level.
Key Support Levels – USD 0.5500, USD 0.5200 and USD 0.5000.
Key Resistance Levels – USD 0.5850, USD 0.6000 and USD 0.6500.