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Ripple XRP

Typical Ripple (XRP) Price Action, Dips Remain Attractive To Bulls

Avatar Aayush Jindal 5 months ago

Ripple extended its rally and traded towards the $0.2250 resistance against the US Dollar. Recently, XRP corrected sharply, but bitcoin managed to pop above $8,000 and $8,200.

  • Ripple price is trimming gains and it even dived to test the $0.2080 support against the US dollar.
  • Bitcoin remained in a positive trend and it surged above the key $8,000 resistance.
  • There is a major contracting triangle forming with support near $0.2090 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair could dip sharply towards the $0.2050 support before it starts a fresh increase.

Ripple Price Remains Supported

Yesterday, we saw a sharp rise in ripple above the $0.2120 resistance against the US Dollar. XRP price even surged above $0.2200, formed a high at $0.2253, and recently started a substantial downside correction.

On the other hand, there were strong gains in bitcoin above $8,000 and $8,200. BTC surged towards the $8,500 level and it is currently correcting lower.

Looking at ripple, there was a downturn below the $0.2200 support area. Besides, the price traded below the 50% Fib retracement level of the upward move from the $0.1937 low to $0.2253 high.

Finally, the price dipped below $0.2100 and tested the $0.2080 support area. It seems like there is a major contracting triangle forming with support near $0.2090 on the hourly chart of the XRP/USD pair.

The current price action suggests that there are chances of another downside thrust below the $0.2100 level. The main support is near the $0.2050 level and the 100 hourly simple moving average.

An intermediate support is near the 61.8% Fib retracement level of the upward move from the $0.1937 low to $0.2253 high. If there is another dip below $0.2100, the bulls are likely to protect the $0.2050 support area. Any further losses might lead the price towards the crucial $0.2000 pivot level.

Dips Present Buying Opportunity?

If ripple dives again below $0.2100, it could be considered as a decent buying opportunity. The $0.2050 support holds the key for the current uptrend and bullish case. Only if the price breaks the $0.2000 support, there are chances of a trend change to bearish.

Ripple Price

Ripple Price

Looking at the chart, ripple price is trimming gains, but it seems like recently formed uptrend is not over yet unless there is a close below $0.2000. On the upside, the price is likely aim a test of $0.2400.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is about to move into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently just below the 50 level.

Major Support Levels – $0.2100, $0.2080 and $0.2050.

Major Resistance Levels – $0.2180, $0.2200 and $0.2250.

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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