Ripple is currently recovering above $0.2325 against the US Dollar and bitcoin is trading above $8,700. XRP price is likely to surge towards $0.2500 or $0.2600 once it clears the $0.2400-$0.2420 resistance.
- Ripple price is showing a few positive signs above the $0.2320 area against the US dollar.
- The bulls seem to be facing a couple of hurdles near the $0.2400 and $0.2420 levels.
- Yesterday’s followed important bearish trend line is active with resistance near $0.2385 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to start a strong rally if it settles above the $0.2400 resistance area.
Ripple Price To Continue Higher
After forming a support base above $0.2240 and $0.2260, ripple started a decent increase against the US Dollar. XRP price broke the $0.2320 resistance area and the 100 hourly simple moving average.
Furthermore, there was a break above the 23.6% Fib retracement level of the downward move from the $0.2540 high to $0.2240 swing low. However, the price faced a strong resistance near the $0.2400 area and it seems to be struggling to settle above the 100 hourly SMA.
More importantly, yesterday’s followed important bearish trend line is active with resistance near $0.2385 on the hourly chart of the XRP/USD pair.
The trend line coincides with the 50% Fib retracement level of the downward move from the $0.2540 high to $0.2240 swing low. Therefore, ripple price must surpass the trend line and the $0.2400 resistance to continue higher in the near term.
A successful close above $0.2400 could start a strong rally and the price is likely to rise towards the $0.2500 and $0.2550 levels. Any further gains might lead the price towards the $0.2600 area.
What If XRP Fails Near $0.2400?
If XRP fails to continue above the $0.2400 resistance, it could resume its decline. The first major support on the downside is near the $0.2300 level (the neckline support).
If there is a clear break below the $0.2300 support, ripple could accelerate its decline towards the $0.2240 support zone in the coming sessions. Any further losses may perhaps call for a test of the $0.2120 support.
Hourly MACD – The MACD for XRP/USD is slowly losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently struggling to stay above the 50 level.
Major Support Levels – $0.2300, $0.2240 and $0.2200.
Major Resistance Levels – $0.2385, $0.2400 and $0.2420.