Key Highlights
- Ripple price declined recently and tested the $0.5000 support area against the US dollar.
- There is a major bearish trend line in place with resistance at $0.5120 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is currently under pressure below the $0.5120 and $0.5200 resistance levels.
Ripple price is struggling to gain bullish momentum against the US Dollar and Bitcoin. XRP/USD may continue to consolidate below $0.5200 for the next few sessions.
Ripple Price Analysis
After testing the $0.5200 resistance, ripple price declined once more against the US Dollar. The XRP/USD pair formed a swing high at $0.5255 and traded below the $0.5150 level. There was even a close below the $0.5100 level and the 100 hourly simple moving average. The decline was such that the price spiked below the $0.5000 support. However, the price recovered later and it is currently consolidating above $0.5000.
An initial resistance is the 23.6% Fib retracement level of the recent slide from the $0.5255 high to $0.4970 swing low. There is also a major bearish trend line in place with resistance at $0.5120 on the hourly chart of the XRP/USD pair. Around the trend line, the 50% Fib retracement level of the recent slide from the $0.5255 high to $0.4970 swing low is positioned at $0.5114. Therefore, if the pair corrects higher, it could find a strong resistance near $0.5115 and $0.5120. Above the trend line, the next major hurdle for buyers is near the $0.5200 level. On the downside, an initial support is at $0.4970, below which the price could revisit $0.4860.
Looking at the chart, ripple price is clearly under pressure below the $0.5200 resistance area. If buyers continue to fail to gain traction, the price may perhaps decline towards $0.4860 or $0.4700.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is well below the 50 level.
Major Support Level – $0.4970
Major Resistance Level – $0.5200
