Ripple declined heavily from well above the $0.2200 resistance against the US Dollar. XRP is currently recovering, but upsides are likely to remain capped near $0.2080 and $0.2100.
- Ripple is trading in a bearish zone below the $0.2000 pivot level against the US dollar.
- The price traded as low as $0.1872 and it is currently correcting higher.
- There is a short term bearish trend line forming with resistance near $0.19855 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could correct higher towards $0.2080, but it is likely to face a strong selling interest.
Ripple Price is Facing Hurdles
This past week, there was a strong decline in bitcoin, Ethereum and ripple. XRP price started a substantial decline from well above the $0.2200 level and broke many key supports near the $0.2080 level.
The price settled below the $0.2000 support area and the 100 hourly simple moving average. It traded as low as $0.1872 and it is currently correcting higher. The bulls were able to push the price above the $0.1920 and $0.1950 resistance levels.
Ripple price surpassed the 23.6% Fib retracement level of the downward move from the $0.2252 high to $0.1872 low. It is now facing hurdles near the $0.2000 resistance area. There is also a short term bearish trend line forming with resistance near $0.19855 on the hourly chart of the XRP/USD pair.
If there is an upside break above the trend line and $0.2000, the pair could recover towards the $0.2065 and $0.2080 resistance levels. The 50% Fib retracement level of the downward move from the $0.2252 high to $0.1872 low is also near $0.2062.
Therefore, the bulls are likely to face a strong selling interest if there is a decent recovery wave towards the $0.2060 and $0.2080 resistance levels.
If ripple fails to correct above $0.2000, it could continue to move down. An initial support on the downside is visible near the $0.1920 level.
The first major support is near the $0.1880 level, below which the bears are likely to aim a test of the $0.1700 level in the coming sessions. The next key support is near the $0.1720 and $0.1700 levels.
Hourly MACD – The MACD for XRP/USD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently just above the 40 level.
Major Support Levels – $0.1920, $0.1900 and $0.1880.
Major Resistance Levels – $0.2000, $0.2060 and $0.2080.
Risk disclaimer: 76.4% of retail CFD accounts lose money.