- Ripple price declined heavily and broke the $0.5200 and $0.5050 support levels against the US dollar.
- This is a major bearish trend line in place with resistance at $0.4950 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair remains in a bearish zone as long as there is no close above $0.4950 and $0.5050.
Ripple price trimmed most of its gains against the US Dollar and Bitcoin. XRP/USD is likely to decline further unless buyers push the price above $0.5050.
Ripple Price Analysis
This past week, there was a steady downside initiated from the $0.5440 swing high in Ripple price against the US Dollar. The XRP/USD pair declined and broke a couple of important support levels like $0.5200 and $0.5050. The downside move was such that the price settled below $0.5000 and the 100 hourly simple moving average. It traded as low as $0.4620 and it is currently correcting higher.
The price has moved above the 23.6% Fib retracement level of the recent decline from the $0.5284 high to $0.4620 low. However, the price is approaching a crucial resistance area near $0.4950. More importantly, there is a major bearish trend line in place with resistance at $0.4950 on the hourly chart of the XRP/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $0.5284 high to $0.4620 low. Therefore, it won’t be easy for buyers to clear the $0.4950 resistance. Above this, the next major barrier awaits near $0.5050, which was a support earlier.
Looking at the chart, ripple price seems to be under a lot of pressure below $0.5050. If it fails to recover above $0.4950, there could be more losses towards $0.4600.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now back above the 50 level.
Major Support Level – $0.4620
Major Resistance Level – $0.4950