Ripple (XRP) Price Crashes Below Key Support: More Losses Possible

Aayush Jindal

1 year ago

2 mins read

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Ripple price traded to a new monthly high at $0.4777 and recently declined sharply against the US dollar.
The price broke the key $0.4570 and $0.4400 support levels to enter a bearish zone.
This week’s crucial ascending channel was breached with support at $0.4500 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair traded as low as $0.3999 and it remains at a risk of more losses in the near term.

Ripple price declined sharply against the US Dollar, similar to bitcoin. XRP broke the $0.4400 support level, tested $0.4000, and it is currently correcting towards key resistance levels.

Ripple Price Analysis

Yesterday, we saw further gains above $0.4500 in ripple price against the US Dollar. The XRP/USD pair traded above the $0.4600 resistance even climbed above the last swing high. A new monthly high was formed at $0.4777 before the price started a major downside move. It broke many important supports, starting with $0.4550 and $0.4500. There was a sharp decline below the $0.4400 support and the 100 hourly simple moving average.

More importantly, this week’s crucial ascending channel was breached with support at $0.4500 on the hourly chart of the XRP/USD pair. The pair declined below the $0.4180 and $0.4100 support levels as well. It tested the $0.4000 support area and it is currently correcting losses. There was a recovery above the $0.4100 level, and the 23.6% Fib retracement level of the recent decline from the $0.4777 high to $0.3999 low. However, the $0.4240 level is currently acting as a resistance.

On the upside, there are many resistances near the $0.4300 and $0.4400 levels. The main resistance is near $0.4400 and the 100 hourly simple moving average. To start a fresh increase, the price must break the $0.4400 resistance area. Besides, the 50% Fib retracement level of the recent decline from the $0.4777 high to $0.3999 low is also near the $0.4388 level. On the downside, an initial support is near the $0.4050 level, below which there is a risk of more declines below the $0.4000 support area.

Looking at the chart, ripple price seems to be struggling below the $0.4240 and $0.4300 levels. There could be a minor upward move, but the bulls are likely to struggle near $0.4300 or $0.4400. Therefore, as long as the price is trading below the $0.4400 level and the 100 hourly SMA, there is a risk of more downsides.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly reducing the recent bearish slope.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 40 level, with a negative angle.

Major Support Levels – $0.4100, $0.4050 and $0.4000.

Major Resistance Levels – $0.4240, $0.4300 and $0.4400.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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