Ripple is trading in a smaller range of more than USD 0.6000 against the US dollar. XRP price is in a big break above USD 0.6200 or below USD 0.5800.
- Ripple is showing a few positive signs above USD 0.6000 and USD 0.5800 against the US dollar.
- The price is stuck above USD 0.6000 and the 100 simple moving average (4 hours).
- A critical contracting triangle is forming with a resistance of $ 0.6130 on the XRP / USD pair’s 4-hour chart (Kraken data source).
- The pair could start a strong upward move if there is a clear break above USD 0.6150 and USD 0.6200.
Ripple’s XRP price is facing significant resistance
After testing the USD 0.5500 support area, ripple XRP price started a steady recovery. There was a break above the USD 0.5750 and USD 0.5800 resistance levels to move into a short term bullish zone.
The price traded above the 23.6% Fib retracement level of the downward move from the high of $ 0.6847 to the low of $ 0.5446. It is now trading above the USD 0.6000 level and the 100 simple moving average (4 hours). On the upside, the price is facing a major resistance near USD 0.6150 and USD 0.6200.
A crucial contracting triangle is also forming with a resistance of USD 0.6130 on the XRP / USD pair’s 4-hour chart. The contracting triangle is close to the 50% Fib retracement level of the downward movement from the high of $ 0.6847 to the low of $ 0.5446.
A close above the USD 0.6150 and USD 0.6200 resistance levels could open the doors for one sharp rise. A successful close above the USD 0.6200 resistance could lift the price towards the USD 0.6500 resistance level. Even more perks can push the price into the $ 0.6800 zone. An intermediate resistance is seen near USD 0.6720.
Downside in XRP?
If ripple fails to surpass the USD 0.6150 and USD 0.6200 resistance levels, it could decline sharply. Initial support on the downside is near the USD 0.6000 level.
The first major support is now forming near the USD 0.5800 level. A break below the triangle support zone and the 100 simple moving average (4 hours) may require a sharp drop. The next big support is seen near the USD 0.5500 level.
4-Hours MACD – The MACD for XRP / USD is losing momentum 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 0.6000, USD 0.5800 and USD 0.5750.
Key Resistance Levels – USD 0.6150, USD 0.6200 and USD 0.6500.