Ripple Price (XRP) Down 10%: Primed For More Losses
- Ripple price started a major decline after it failed to stay above the $0.4000 support against the US dollar.
- The price declined heavily and broke the $0.3850 and $0.3750 support levels.
- There is a new connecting bearish trend line forming with resistance near $0.3850 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price is currently consolidating and remains at a risk of more losses below $0.3500.
Ripple price declined sharply below $0.3750 against the US Dollar and down around 10% similar to bitcoin. XRP price may slide further if it fails to stay above $0.3450.
Ripple Price Analysis
Bitcoin price started a major decline from well above $13,000 and traded below the $12,000 support. It sparked bearish moves in ripple price below the $0.4000 support area. As a result, there was a sharp decline in XRP/USD below the $0.3850 and $0.3750 support levels. Moreover, the price broke the $0.3600 support area and settled well below the 100 hourly simple moving average.
Finally, there was a break below the $0.3500 support and the price traded as low as $0.3461. At the moment, the price is consolidating losses above the $0.3500 level. It broke the 23.6% Fib retracement level of the recent decline from the $0.3968 high to $0.3461 low. Moreover, there is a contracting triangle forming with resistance at $0.3620 on the hourly chart of the XRP/USD pair.
If there is a downside break below the $0.3550 support, the price could resume its slide. In the mentioned case, the price may even break the $0.3500 and $0.3450 support levels. The next key support is near the $0.3400 level. Conversely, if there is an upside break, the price could recover towards the $0.3700 level. However, the price is likely to face resistance near $0.3700 or $0.3720.
The 50% Fib retracement level of the recent decline from the $0.3968 high to $0.3461 low is also near the $0.3710 level. Moreover, there is a new connecting bearish trend line forming with resistance near $0.3850 on the same chart. As long as the price is below the $0.3700 and $0.3800 levels, it remains at a risk of more losses.
Looking at the chart, ripple price is clearly trading in a bearish zone below $0.3650 and $0.3700. It won’t be easy for the bulls to stage a recovery and the price is likely to extend losses below the $0.3500 support.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently recovering towards the 40 level.
Major Support Levels – $0.3550, $0.3500 and $0.3450.
Major Resistance Levels – $0.3650, $0.3700 and $0.3800.
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Aayush Jindal, Khareem Sudlow
