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Key Highlights
- Ripple price traded close to the $0.9250 level before it faced a strong resistance against the US dollar.
- There was a break below an important bullish trend line with support at $0.9000 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is currently under pressure and it could continue to decline towards $0.7800 in the near term.
Ripple price is trimming its recent gains against the US Dollar and Bitcoin. XRP/USD may perhaps extend the current decline towards the $0.7900 and $0.7800 support levels.
Ripple Price Decline
This past week, we saw a decent upside move above $0.9000 in Ripple price against the US Dollar. The price traded above the $0.9200 level and formed a high at $0.9240. Later, a downside correction was initiated and the price declined below the $0.9000 and $0.8800 support levels. During the decline, the price broke the 23.6% Fib retracement level of the last wave from the $0.7800 swing low to $0.9240 high.
More importantly, there was a break below an important bullish trend line with support at $0.9000 on the hourly chart of the XRP/USD pair. The pair even settled below the $0.8500 support and the 100 hourly simple moving average. At the moment, the price is testing the 76.4% Fib retracement level of the last wave from the $0.7800 swing low to $0.9240 high at $0.8150. If the price continues to move down and breaks the $0.8150 support, there could be more declines toward the $0.7800 level.
Looking at the chart, the price is clearly under pressure from the $0.9000 swing high. It has trimmed most of its gains and is currently trading near $0.8200. Any further declines may perhaps call for a test of the last swing low of $0.7800.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now near the oversold levels.
Major Support Level – $0.8150
Major Resistance Level – $0.8500
