Ripple (XRP) Showing Signs of Weakness But 100 SMA Can Trigger New Rally

Aayush Jindal

1 year ago

2 mins read

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Ripple is still struggling to surpass the $0.1780 resistance area against the US Dollar. XRP price is currently holding the 100 hourly SMA and it could rise again.

Ripple price is still facing a strong hurdle near $0.1750 and $0.1780 against the US dollar.
There key supports forming near the $0.1720 and the 100 hourly SMA.
There is an expanding triangle forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair is likely to rally above $0.1780 in the short term as long as it is above $0.1700.

Ripple Price Testing Key Support

Yesterday, there was a steady rise in ripple above the $0.1700 resistance area. XRP price traded above the $0.1720 resistance area and the 100 hourly simple moving average.

However, the price struggled to gain momentum above the $0.1750 and $0.1780 resistance levels. The bulls failed once again near $0.1780 and a high was formed near $0.1779.

Ripple is currently correcting lower and trading below the $0.1750 level. There was a break below the 23.6% Fib retracement level of the upward move from the $0.1620 low to $0.1779 high.

On the downside, the $0.1720 pivot area and the 100 hourly simple moving average are currently acting as supports. There is also an expanding triangle forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair.

If the pair fails to stay above the triangle support and the 100 hourly SMA, it could correct further towards the main $0.1700 support area. The 50% Fib retracement level of the upward move from the $0.1620 low to $0.1779 high is also near the $0.1700 level.

Any further losses may perhaps start a substantial decline and the price is likely to decline towards the $0.1620 support area.

Bullish Break?

If ripple remains well bid above the 100 hourly SMA, it could rise steadily. On the upside, the main resistance is near the $0.1780 area.

A clear break and close above the $0.1780 resistance is likely to set the pace for a sharp rally. In the mentioned bullish case, the bulls are likely to aim a test of the $0.1880 and $0.1920 resistance levels in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is rising towards the 50 level.

Major Support Levels – $0.1720, $0.1700 and $0.1620.

Major Resistance Levels – $0.1750, $0.1780 and $0.1880.

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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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