Ripple (XRP) Takes a Bit Hit, But This Variable Can Trigger A New Rally

Aayush Jindal

1 year ago

2 mins read

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Ripple rallied to a new monthly high at $0.2358 before correcting gains against the US Dollar. XRP price is now trading above the $0.2100 support and likely to start a fresh increase.

Ripple price declined sharply after it failed to surpass the $0.2350 resistance against the US dollar.
It is now trading above the $0.2100 support and likely restart its increase.
There is a major bullish trend line forming with support near $0.2125 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair could climb back above $0.2200 and $0.2220 resistance levels in the near term.

Ripple Price Holding Uptrend Support

In the past two days, there was a strong surge in bitcoin, Ethereum and ripple. XRP formed a strong support base above $0.2000 and rallied above the $0.2120 and $0.2200 resistance levels.

It even climbed above $0.2320 and settled well above the 100 hourly simple moving average. Finally, the price traded to a new monthly high at $0.2358 and recently started a sharp downside correction.

There was a break below the $0.2200 support zone. Ripple even spiked below the $0.2100 support zone, but it remained well bid near the 100 hourly simple moving average. A low is formed near $0.2085 and the price is currently rising.

It is trading above the $0.2120 level, and the 23.6% Fib retracement level of the recent decline from the $0.2358 high to $0.2085 low. There is also a major bullish trend line forming with support near $0.2125 on the hourly chart of the XRP/USD pair.

On the upside, an initial resistance is seen near the $0.2185 level. The first major resistance is near the $0.2220 level since it is close to the 50% Fib retracement level of the recent decline from the $0.2358 high to $0.2085 low.

To start a fresh increase, the price must gain momentum above the $0.2185 and $0.2220 resistance levels. The next major hurdle is near the $0.2300 and $0.2350 levels.

More Downsides?

Ripple is clearly trading above a major support zone at $0.2100 and the 100 hourly SMA. If it fails to stay above $0.2100, there is a risk of more downsides.

The next major support is near the $0.2050 level, below which the bears are likely to aim a test of the key $0.2000 support zone in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is moving back in bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently rising and likely to climb above the 50 level.

Major Support Levels – $0.2120, $0.2100 and $0.2050.

Major Resistance Levels – $0.2185, $0.2220 and $0.2300.

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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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