Ripple (XRP) Price Indicators Show Vulnerability To A Sharp Decline

Aayush Jindal

1 year ago

2 mins read

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Ripple is facing an uphill task near the $0.2500 resistance against the US Dollar. XRP price could nosedive if it struggles to clear the main $0.2500 barrier.

Ripple is currently consolidating above the $0.2425 and $0.2380 levels against the US dollar.
The price is facing a strong resistance near the $0.2500 level and the 100 hourly simple moving average.
There is a key declining channel forming with resistance near $0.2505 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair could decline heavily below the $0.2425 support unless it surges past $0.2500.

Ripple Price is Following a Downtrend

After forming a short-term top near the $0.2580 zone, ripple started a fresh decline. XRP price broke the $0.2500 and $0.2480 support levels to move into a short-term bearish zone.

The price even settled below the $0.2480 level and the 100 hourly simple moving average. It traded as low as $0.2426 and currently consolidating losses. It corrected above the 23.6% Fib retracement level of the recent decline from the $0.2547 high to $0.2426 low.

However, ripple is facing a lot of hurdles on the upside, starting with $0.2480 or the 50% Fib retracement level of the recent decline from the $0.2547 high to $0.2426 low.

Ripple price trades below $0.2500. Source: TradingView.com

There is also a key declining channel forming with resistance near $0.2515 on the hourly chart of the XRP/USD pair. An intermediate resistance for the bulls is near the $0.2500 zone and the 100 hourly simple moving average. A successful break above the $0.2500 and $0.2515 levels is must to overcome the current selling pressure.

The next major resistance is near the $0.2550 level, above which the price might attempt to clear the $0.2580 and $0.2600 levels in the coming sessions.

Bearish Break in XRP?

If ripple fails to clear the $0.2500 and $0.2515 resistance levels, there are chances of more losses. An initial support on the downside is near the $0.2425 swing low.

The main support is forming near the $0.2400 level and the channel lower trend line. A close below the $0.2400 support might increase selling pressure and the price could decline sharply towards $0.2300 or $0.2250.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving into the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting higher, but it is still below the 50 level.

Major Support Levels – $0.2425, $0.2400 and $0.2320.

Major Resistance Levels – $0.2480, $0.2500 and $0.2550.

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