Charted: Ripple (XRP) Recovery Faces Hurdle, Why Dips Could Be Limited

Aayush Jindal

Last Updated: June 11, 2024 2:12 pm

2 mins read

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Ripple started a strong recovery wave above the $0.2500 and $0.3000 levels against the US Dollar. XRP price is currently facing a strong resistance, but dips might be limited below $0.2500.

Ripple started a fresh upward move after forming a support base near $0.2150 against the US dollar.
The price is now trading well above $0.2500 and the 100 simple moving average (4-hours).
There is a key bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
The pair spiked to test the trend line and it is currently retreating towards $0.2750.

Ripple’s XRP Price is Facing Hurdles

After a sharp decline, ripple’s XRP price started a consolidation phase above the $0.2000 level. A support base was formed near the $0.2150 level before the price started a strong increase.

The price broke the $0.2450 and $0.2500 resistance levels to start a strong increase. There was a close above the $0.2500 level and the 100 simple moving average (4-hours). The bulls gained strength and they were able to push the price above the $0.3000 level.

However, upsides were limited and there was only a spike above $0.3200. There is also a key bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair.

Source: XRPUSD on TradingView.com

A swing high is formed near $0.3700 on Kraken and the price is currently retreating lower. There was a break below the $0.3120 support level. It is currently testing the 50% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high.

If there are more losses, the price could test the $0.2750 support and the 100 simple moving average (4-hours). The 61.8% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high is also near $0.2750. The next major support on the downside is forming near the $0.2500 level.

Upsides Capped in XRP?

If ripple starts another recovery wave, it could face a lot of hurdles, starting with $0.3120. The first major resistance for the bulls is near the $0.3250 level.

The main resistance is now forming near the $0.3500 level and the bearish trend line. A close above the $0.3500 zone could lead the price towards the $0.4000 level in the near term.

Technical Indicators

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

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 60 level.

Major Support Levels – $0.2800, $0.2750 and $0.2550.

Major Resistance Levels – $0.3150, $0.3250 and $0.3500.

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.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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