Ripple (XRP) Shows Signs of Reversal But 100 SMA Can Trigger New Rally

Aayush Jindal

1 year ago

2 mins read

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Ripple is currently consolidating above the $0.2100 support against the US Dollar. XRP price is showing bearish signs, but it could start a fresh increase as long as it is above the 100 SMA (H4).

Ripple price is currently struggling to stay above the $0.2100 support against the US dollar.
The price is facing a couple of important hurdles near the $0.2220 and $0.2265 levels.
There was a break below a key bullish trend line with support near $0.2160 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
The pair must stay above $0.2050 and the 100 SMA (H4) to start a fresh increase.

Ripple Price Trading Near Crucial Juncture

This past month, ripple surged above the $0.2000 and $0.2100 resistance levels to move into a positive zone. XRP price traded as high as $0.2359, settled well above the 100 simple moving average (4-hours), and recently started a downside correction.

There was a break below the $0.2200 support zone. The price declined below the 23.6% Fib retracement level of the upward move from the $0.1789 low to $0.2359 high.

However, the $0.2100 region is acting as a strong support. The 50% Fib retracement level of the upward move from the $0.1789 low to $0.2359 high is also acting as a support.

In the past few days, ripple traded in a broad range above $0.2100, but it struggled to clear the $0.2250 resistance zone. There was a downside reaction and a break below a key bullish trend line with support near $0.2160 on the 4-hours chart of the XRP/USD pair.

The pair is still trading above the $0.2100 support area, but it is now struggling to recover above the broken trend line and $0.2180. To move into a positive zone, the price must surpass the $0.2200 and $0.2250 resistance levels.

The next major resistance is near the $0.2265, above which the bulls are likely to aim a larger upward move towards the $0.2350 and $0.2420 levels.

Reversal Chances?

On the downside, there is a key support forming near $0.2100. The most important uptrend support is near the $0.2050 level and the 100 simple moving average (4-hours).

If the price fails to stay above the 100 SMA (H4) and declines below $0.2000, there are chances of a bearish reversal towards the $0.1800 level.

Technical Indicators

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

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently below the 50 level, with bearish signs.

Major Support Levels – $0.2100, $0.2070 and $0.2050.

Major Resistance Levels – $0.2200, $0.2250 and $0.2350.

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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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