This Confluence Of Bearish Factors Shows Ripple (XRP) Could Dive Again

Aayush Jindal

1 year ago

2 mins read

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Ripple started an upside correction after trading as low as $0.1690 against the US Dollar. XRP price is currently facing a strong resistance at $0.1800 and it could resume its decline.

Ripple corrected higher above the $0.1720 and $0.1750 resistance levels against the US dollar.
The price is currently struggling to clear the $0.1800 resistance region and the 100 hourly SMA.
There is a connecting bearish trend line forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair must settle above the $0.1800 resistance to start a steady recovery in the near term.

Ripple Price Could Fail Near $0.1800

This past week, ripple price extended its decline below the $0.1900 support. XRP broke many key supports near $0.1880 to move further into a bearish zone.

More importantly, there was a close below the $0.1800 level and the 100 hourly simple moving average. It traded to a new monthly low at $0.1690 and recently started an upside correction. The bulls pushed the price above the $0.1720 and $0.1750 resistance levels.

The price even spiked above the 50% Fib retracement level of the downward move from the $0.1866 high to $0.1690 low. However, the previous support near the $0.1800 level is now acting as a strong resistance for the bulls.

Ripple price trades below $0.1800. Source: TradingView.com

There is also a connecting bearish trend line forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair. Above the trend line, the 61.8% Fib retracement level of the downward move from the $0.1866 high to $0.1690 low is near $0.1800 and the 100 hourly simple moving average.

The bulls need to clear the $0.1800 resistance level and the 100 hourly SMA to start a steady increase. If they succeed, the price could recover towards the $0.1880 and $0.1900 resistance levels.

Fresh Decline in XRP?

Conversely, ripple price might start a fresh drop from the $0.1800 resistance level. An initial support is near the $0.1760 and $0.1750 levels.

If the price settles below the $0.1750 support, it could continue to move down and resume its decline. The next crucial support is at $0.1700, followed by $0.1680.

Technical Indicators

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

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is declining and it is currently below the 50 level.

Major Support Levels – $0.1750, $0.1700 and $0.1680.

Major Resistance Levels – $0.1780, $0.1800 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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