Ripple (XRP) Defies Gravity But Here Is Why It Could Correct In Short-Term

Aayush Jindal

1 year ago

2 mins read

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Ripple started an upward move above the $0.1850 resistance area against the US Dollar. However, XRP price is struggling to gain momentum above the $0.1900 and $0.1920 resistance levels.

Ripple price is showing positive signs above the $0.1850 pivot level against the US dollar.
The bulls are still struggling to gain strength above the $0.1900 and $0.1920 levels.
There is a connecting bullish trend line forming with support near $0.1850 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair is likely to continue higher towards $0.1950 as long as it is above $0.1850.

Ripple Price Remains Supported on Dips

After correcting lower, ripple found support near the $0.1800 level. XRP price formed a support base above the $0.1820 level and recently started a decent upward move, following bitcoin and Ethereum.

The upward move was such that the price climbed nicely above the $0.1850 resistance and the 100 hourly simple moving average. It opened the doors for more gains above the $0.1880 resistance level.

Ripple even broke the 61.8% Fib retracement level of the key decline from the $0.1951 high to $0.1785 low. It is now trading above a major bearish trend line at $0.1880 on the hourly chart of the XRP/USD pair.

On the upside, the bulls are struggling to clear the $0.1910-$0.1920 resistance area. The 76.4% Fib retracement level of the key decline from the $0.1951 high to $0.1785 low is also stopping gains. The price currently correcting lower below $0.1900 and testing the 100 hourly SMA.

On the downside, there is a strong support forming near the $0.1850 level. There is also a connecting bullish trend line forming with support near $0.1850 on the same chart.

If XRP fails to stay above the $0.1850 support area, it could move back into a negative zone. Any further losses might call for a test of the $0.1800 level

Upside Continuation Scenario

Ripple is likely to remain well bid above the $0.1850 support and the trend line. On the upside, the bulls need to gain momentum above the $0.1900 and $0.1920 level.

If they succeed, there are high chances of more upsides towards the $0.1950 level. The main resistance on the upside is near the $0.2000 level.

Technical Indicators

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

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

Major Support Levels – $0.1880, $0.1850 and $0.1800.

Major Resistance Levels – $0.1910, $0.1920 and $0.1950.

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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.

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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