Why Ripple (XRP) Bulls Need To Be Careful After New 2-Year Low?
- Ripple price is diving below $0.1900 and it recently traded to a new 2-year low against the US dollar.
- It broke a significant support, opening the doors for further losses below $0.1800.
- There is a key bearish trend line forming with resistance near $0.2100 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- BTC and ETH are also sliding and gaining bearish momentum below $7,000 and $130 respectively.
Ripple price is now trading below a major multi-month support against the US Dollar. Therefore, XRP bulls need to be careful, considering chances of more losses below $0.1800.
Ripple Price Analysis
In the past few weeks, there was a steady decline in bitcoin, Ethereum and XRP against the US Dollar. Moreover, XRP price settled below the key $0.2200 pivot area and the 100 simple moving average (4-hours).
Therefore, it cleared the way for more losses below $0.2100. Finally, the price broke a major support area near the $0.2000 level and a crucial multi-month support near $0.1980.
The price declined heavily and even spiked below the $0.1800 level. A new 2-year low was formed near $0.1770 and the price is currently correcting higher. An initial resistance for ripple is near the $0.1880 level.
Besides, the 23.6% Fib retracement level of the recent decline from the $0.2195 high to $0.1770 low is near the $0.1870 level. If there is an upside correction above $0.1880, the price could recover towards the $0.1980 resistance area.
The breakdown supports near $0.1980 and $0.2000 are likely to act as key hurdles. Additionally, the 50% Fib retracement level of the recent decline from the $0.2195 high to $0.1770 low is near the $0.1982 level.
More importantly, there is a key bearish trend line forming with resistance near $0.2100 on the 4-hours chart of the XRP/USD pair. Therefore, if the price starts a recovery, it is likely to struggle near $0.2000 and $0.2100.
A successful daily close above the $0.2100 level is needed to start a strong recovery. If not, the bulls need to be very careful in the next few weeks, as there could be massive moves and drops in ripple below the $0.1800 level.
Ripple Price
Looking at the chart, ripple price is showing signs of a short term correction, but the bears are likely to protect $0.2000. On the downside, the main supports are near $0.1800 and $0.1680.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well into the oversold area.
Major Support Levels – $0.1800, $0.1740 and $0.1680.
Major Resistance Levels – $0.1980, $0.2000 and $0.2100.
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Aayush Jindal, Khareem Sudlow
