Ripple (XRP) Showing Positive Signs But This Resistance Holds The Key
Ripple is currently correcting higher from the $0.1783 low against the US Dollar. XRP price is showing positive signs, but it must surpass $0.1850 to continue higher.
- Ripple slowly gaining traction and it is trading above the $0.1800 level against the US dollar.
- The price is facing a couple of strong hurdles near the $0.1840 and $0.1850 levels.
- There was a break above a major bearish trend line with resistance near $0.1825 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair must settle above the $0.1850 resistance to move further into a bullish zone.
Ripple Price is Facing Hurdles
Ripple price followed a bearish path in the past few days and traded below the $0.1900 support, similar to bitcoin and Ethereum. XRP even broke the $0.1850 support and settled below the 100 hourly simple moving average.
A new weekly low was formed near $0.1783 before the price started an upside correction. It recovered above the $0.1800 level to move into a short term positive zone. Besides, there was a break above the 23.6% Fib retracement level of the downward move from the $0.1900 high to $0.1783 low.
There was also a break above a major bearish trend line with resistance near $0.1825 on the hourly chart of the XRP/USD pair. However, ripple is struggling to gain momentum above $0.1820 after the recent trend line break.
Ripple price trades above $0.1800. Source: TradingView.com
The bulls are facing a couple of strong hurdles near the $0.1840 and $0.1850 levels. The 50% Fib retracement level of the downward move from the $0.1900 high to $0.1783 low is also near the $0.1842 level to act as a resistance.
Therefore, XRP price must settle above the $0.1850 resistance and the 100 hourly simple moving average to move further into a bullish zone.
Fresh Drop in XRP?
If ripple struggles to clear the $0.1850 resistance or the 100 hourly SMA, it could start a fresh decline below the $0.1810 support level.
The key support is near the $0.1780 level, below which there is a risk of more downsides below $0.1750 in the near term. The next crucial support is at $0.1725, followed by $0.1700.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is struggling to gain momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is declining and it is approaching the 40 level.
Major Support Levels – $0.1800, $0.1780 and $0.1720.
Major Resistance Levels – $0.1840, $0.1850 and $0.1880.
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