Key Highlights
- Ripple price found support above $0.5500 after a major decline against the US dollar.
- There is a key connecting bearish trend line forming with resistance at $0.5950 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair may correct a few points higher in the near term, but upsides are likely to be capped by $0.6000.
Ripple price faced a lot of selling pressure this week against the US Dollar and Bitcoin. XRP/USD is now consolidating above the $0.5500 support level.
Ripple Price Resistance
Yesterday, we saw a major decline in Ripple price from well above $0.6000 against the US Dollar. The price fell sharply and settled below the mentioned $0.6000 level and the 100 hourly simple moving average. A low was formed near the $0.5572 before the price a short-term support. A minor upside correction was initiated and the price moved above the 23.6% Fib retracement level of the last drop from the $0.6361 high to $0.5572 low.
However, the upside move was capped by the $0.6000 level. Moreover, the 38.2% Fib retracement level of the last drop from the $0.6361 high to $0.5572 low also prevented further gains. Basically, there was a rejection from the $0.6000 level and the price is now consolidating in a range above $0.5500. On the upside, there is a key connecting bearish trend line forming with resistance at $0.5950 on the hourly chart of the XRP/USD pair. Above the mentioned $0.6000, the next hurdle is near the $0.6140 level.
In terms of the support, the $0.5500 level holds the key. A push below $0.5500 could ignite further losses and the price may even test the $0.5000 level.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is showing signs of range trading in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is slightly moving higher from the 40 level.
Major Support Level – $0.5500
Major Resistance Level – $0.6000
Charts courtesy – Trading View