BUY BITCOIN
- Ripple price declined sharply after it broke the key $0.2900 support area against the US dollar.
- The price is down more than 10% and even tumbled to test the $0.2350 level.
- A short term breakout pattern is forming with resistance near $0.2685 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to accelerate its decline once it breaks the $0.2580 and $0.2500 support levels.
Ripple price is down and out against the US Dollar and bitcoin. XRP price is now trading in a crucial downtrend, with chances of more downsides towards the $0.2400 level.
Ripple Price Analysis
Yesterday, we saw bearish moves in bitcoin, but ripple price remained stable above $0.2900 against the US Dollar. However, the XRP/USD pair failed to hold the $0.2920 and $0.2900 support levels. As a result, there was a sharp decline below the $0.2800 and $0.2720 support levels. The price declined more than 15% in the past few sessions and spiked sharply below $0.2500. A new swing low was formed near $0.2350 and the price recently corrected higher.
It broke the $0.2500 level plus the 50% Fib retracement level of the recent drop from the $0.2975 high to $0.2336 low. However, the price is facing a lot of hurdles on the upside near the $0.2700 level. At the outset, there is a short term breakout pattern is forming with resistance near $0.2685 on the hourly chart of the XRP/USD pair. Above the triangle resistance, the next resistance is near the $0.2740 level.
Moreover, the 61.8% Fib retracement level of the recent drop from the $0.2975 high to $0.2336 low is near the $0.2730 level. If there is a break above the $0.2750 resistance, the price could recover towards the $0.2850 and $0.2900 resistance levels (the previous supports).
Conversely, if there is a downside break below the $0.2550 support, the price could accelerate losses. The next support is near the $0.2500 level, below which there is a risk of a sharp drop towards the $0.2350 swing low. If there are more downside, the next stop for the bears could be $0.2200.
Looking at the chart, ripple price is clearly trading in a bearish zone below the $0.2750 resistance. The current price action indicates more downsides below the $0.2550 and $0.2500 levels. It would be interesting to see how the bulls react if the price reaches the $0.2400 support area.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is slowly reducing its bearish slope.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is recovering above the 30 level.
Major Support Levels – $0.2550, $0.2500 and $0.2400.
Major Resistance Levels – $0.2700, $0.2750 and $0.2850.
