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technical analysis ripple

Ripple (XRP) Price Turns Short Term Bearish, $0.2980 Presents Resistance

Avatar Aayush Jindal 5 months ago
  • Ripple price is showing bearish signs and recently declined below $0.2980 against the US dollar.
  • The price is currently consolidating losses above $0.2850 after it traded as low as $0.2746.
  • There is a short term breakout pattern forming with resistance near $0.2910 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • If there is a downside break, the price could revisit the $0.2800 support level.

Ripple price declined sharply in the past three sessions against the US Dollar and bitcoin. XRP price is consolidating losses and it could face a strong resistance near $0.2980.

Ripple Price Analysis

Yesterday, we saw a steady rise in ripple above the $0.3000 resistance area against the US Dollar. Moreover, XRP climbed above the $0.3050 and $0.3120 levels.

However, the $0.3150 area prevented more upsides and a high was formed near $0.3149. As a result, there was a nasty decline below the $0.3050 and $0.3000 support levels. More importantly, there was a break below a connecting bullish trend line with support near $0.3000 on the hourly chart of the XRP/USD pair.

Finally, ripple dived below the $0.2980 support area and the 100 hourly simple moving average. It opened the doors for more losses and the price traded below $0.2800.

A low was formed near $0.2746 and the price later recovered above $0.2800. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $0.3149 high to $0.2746 low.

At the outset, the price is consolidating losses above the $0.2850 support area. Additionally, there is a short term breakout pattern forming with resistance near $0.2910 on the same chart.

If there is a downside break below the $0.2880 support, there is a risk of more losses below the $0.2850 support area. The next key support is near the $0.2800 level, below which ripple could revisit the $0.2750 area.

Conversely, the price could correct further above $0.2900. The next key resistance is near $0.2950. It coincides with the 50% Fib retracement level of the recent decline from the $0.3149 high to $0.2746 low. The main resistance area is near $0.2980 and the 100 hourly SMA.

Ripple Price

Ripple Price

Looking at the chart, ripple price is clearly consolidating losses above the $0.2850 area. To start a fresh increase, it must break the $0.2950 and $0.2980 resistance levels. If not, it could resume its decline below $0.2850 and $0.2800.

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 slowly climbing higher towards the 45 level.

Major Support Levels – $0.2880, $0.2850 and $0.2800.

Major Resistance Levels – $0.2900, $0.2950 and $0.2980.

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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