Charted: Ripple (XRP) Nosedives, Why Bears Could Aim $0.42
Ripple started a major decline after it broke the $0.5300 support against the US Dollar. XRP price is now trading well below $0.5000 and it could continue to move down towards $0.4200.
- Ripple started a strong decline from well above the $0.5300 support zone against the US dollar.
- The price is now trading well below $0.5000 and the 100 simple moving average (4-hours).
- There was a break below a major declining channel with support near $0.5400 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is gaining bearish momentum and it could continue to move down towards $0.4300 or $0.4200.
Ripple’s XRP Price is Gaining Bearish Momentum
After a sharp spike towards $0.6500, ripple’s XRP price started a steady decline. The price traded below the $0.6000 and $0.5500 support levels. Recently, there was a sharp decline in bitcoin and Ethereum, resulting in more losses in XRP.
There was a crucial downside break below the $0.5300 support level and the 100 simple moving average (4-hours). There was also a break below a major declining channel with support near $0.5400 on the 4-hours chart of the XRP/USD pair.
Source: XRPUSD on TradingView.com
The pair settled below the $0.5000 support level and traded below the 50% Fib retracement level of the key upward move from the $0.4391 swing low to $0.6585 high.
It opened the doors for more losses below $0.4800. XRP price is now trading below the 76.4% Fib retracement level of the key upward move from the $0.4391 swing low to $0.6585 high. Any more losses could lead the price towards $0.4500. The next major support is near the $0.4300 level, below which the price could even test $0.4200.
Upsides Capped in XRP?
If ripple starts a recovery wave, it could face a lot of hurdles, starting with $0.5000. The first major resistance for the bulls is near the $0.5250 and $0.5300 levels (the recent breakdown zone).
The main resistance is now forming near the $0.5500 level and the 100 simple moving average (4-hours). A close above the $0.5300 and $0.5500 levels could initiate a fresh rally towards the $0.6500 zone.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.
Major Support Levels – $0.4500, $0.4300 and $0.4200.
Major Resistance Levels – $0.5000, $0.5300 and $0.5500.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
