Charted: Ripple (XRP) Tumbles 20%, Why It Could Test $0.20

Aayush Jindal

1 year ago

2 mins read

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Ripple started a fresh decline after it failed to stay above $0.3000 against the US Dollar. XRP price is over 20% and it seems like the bears are aiming a test of the $0.2000 support.

Ripple started a fresh decline from well above the $0.2800 support zone against the US dollar.
The price is now trading well below $0.2500 and the 100 simple moving average (4-hours).
There is a major bearish trend line forming with resistance near $0.2460 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
The pair is gaining bearish momentum and it could continue to move down towards $0.2000 or $0.1880.

Ripple’s XRP Price Tumbles Again

After a sharp decline, ripple’s XRP price started a decent recovery wave. It broke the $0.3000 and $0.3200 resistance levels, but it failed to continue higher. A swing high was formed near $0.3867 before the bears took back control.

There was another sharp decline and the price tumbled below the $0.3000 support. The price broke the $0.2800 support and settled well below 100 simple moving average (4-hours).

There was also a break below the 61.8% Fib retracement level of the recovery wave from the $0.2004 swing low to $0.3867 high. It opened the doors for more downsides below $0.2400. There is also a major bearish trend line forming with resistance near $0.2460 on the 4-hours chart of the XRP/USD pair.

Source: XRPUSD on TradingView.com

The price is now trading below the 76.4% Fib retracement level of the recovery wave from the $0.2004 swing low to $0.3867 high. It seems like the bears are likely to aim more losses below $0.2200. Th next key support is near the $0.2000 level.

Any more losses could lead the price towards the $0.1550 zone. It is close to the 1.236 Fib extension level of the recovery wave from the $0.2004 swing low to $0.3867 high.

Upsides Capped in XRP?

If ripple starts a recovery wave, it could face a lot of hurdles, starting with $0.2350. The first major resistance for the bulls is near the $0.2500 level and the bearish trend line.

The main resistance is now forming near the $0.3000 level, above which it could recover towards the 100 simple moving average (4-hours).

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 40 level.

Major Support Levels – $0.2050, $0.2000 and $0.1550.

Major Resistance Levels – $0.2450, $0.2500 and $0.3000.

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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