Ripple (XRP) Just Broke $0.18 and It’s Vulnerable For Bigger Decline
Ripple is down more than 5%, and it broke the $0.1850 and $0.1820 support levels against the US Dollar. XRP price could correct a few points, but upsides are likely to face hurdles near $0.1820.
- Ripple is gaining bearish momentum below the $0.1820 support against the US dollar.
- Bitcoin and Ethereum started a major decline below the $9,200 and $235 support respectively.
- There was a break below a key contracting triangle with support near $0.1830 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could correct higher, but the bears are likely to protect upsides near $0.1820.
Ripple Price Dives 5%
Ripple price failed to clear the $0.1900 resistance level and started a sharp decline, similar to BTC and ETH. XRP broke the $0.1880 and $0.1850 support levels to move into a bearish zone.
The decline was such that the price traded below the $0.1820 support and the 100 hourly simple moving average. There was a break below a key contracting triangle with support near $0.1830 on the hourly chart of the XRP/USD pair.
Finally, it spiked below the $0.1800 support and tested the $0.1780 support. A low is formed near $0.1783 and the price is currently trading in the red zone. An initial resistance on the upside is near the $0.1810 level.
The 23.6% Fib retracement level of the recent decline from the $0.1900 high to $0.1783 low is also near the $0.1810 level. The first major resistance is near the $0.1820 level (the recent breakdown zone).
Ripple price broke $0.1800. Source: TradingView.com
If there is a clear break above $0.1810 and $0.1820, the price could revisit the $0.1850 resistance. It is close to the 50% Fib retracement level of the recent decline from the $0.1900 high to $0.1783 low.
A successful break above the $0.1820 resistance and a follow up move above the $0.1850 level is needed to start a fresh increase. The next set of hurdles is near the $0.1900 level.
More Losses in XRP?
Ripple is currently finding bids near the $0.1780 region. Therefore, there could correct higher, but the bears are likely to protect upsides near $0.1820.
If the bulls fail to push the price above the $0.1820 resistance, there is a risk of more downsides below $0.1780 in the near term. The next major support is at $0.1725, below which the price might test $0.1700.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is struggling to gain traction in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 30 level.
Major Support Levels – $0.1780, $0.1720 and $0.1700.
Major Resistance Levels – $0.1810, $0.1820 and $0.1850.
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Aayush Jindal, Khareem Sudlow