Ripple (XRP) Drops 5% On The Day And It’s Vulnerable For Bigger Decline

Aayush Jindal

1 year ago

2 mins read

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Ripple is declining from the $0.2900 resistance area against the US Dollar. XRP price broke $0.2700 and it could continue to correct lower towards the $0.2600 support.

Ripple price started a downside correction after it failed to test $0.3000 against the US dollar.
There was a break below the $0.2800 and $0.2700 levels.
There is a key declining channel forming with resistance near $0.2735 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price could continue to move down towards $0.2600 or $0.2540 in the near term.

Ripple Price Remains At Risk

After a decent upward move, ripple faced a strong resistance near the $0.2880-$0.2900 area. Moreover, XRP price failed to test the $0.3000 resistance area and formed a short term top near the $0.2891 level.

As a result, there was a downside correction below the $0.2800 level. Besides, the price traded below the 50% Fib retracement level of the last leg from the $0.2635 low to $0.2891 high.

The price is now trading below $0.2750 and the 100 hourly simple moving average. An immediate support is seen near the $0.2695 level. It coincides with the 76.4% Fib retracement level of the last leg from the $0.2635 low to $0.2891 high.

More importantly, there is a key declining channel forming with resistance near $0.2735 on the hourly chart of the XRP/USD pair. Therefore, there is a risk of more losses in ripple below the $0.2695 level.

The next support is seen near the last swing low of $0.2635. If the price fails to stay above the $0.2635, it could continue to move down towards the $0.2600 support area.

Any further losses may perhaps lead the price towards the $0.2575 support area. It coincides with the 1.236 Fib extension level of the last leg from the $0.2635 low to $0.2891 high.

Fresh Increase?

On the upside, there are a few key hurdles forming near the $0.2735 and $0.2740 levels for ripple. The first key resistance is seen near the $0.2800 area and the 100 hourly simple moving average.

To move into a positive zone, the bulls need to push the price above $0.2800. The main hurdle is still near the $0.2880-$0.2900 area, above which ripple price might rise towards the $0.3000 resistance.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently declining and it is below the 40 level.

Major Support Levels – $0.2695, $0.2635 and $0.2600.

Major Resistance Levels – $0.2740, $0.2800 and $0.2890.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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