Ripple (XRP) Is Primed To Correct Higher Despite Recent Sell-off

Aayush Jindal

1 year ago

2 mins read

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Ripple remained in a major downtrend from well above the $0.2650 level against the US Dollar. XRP price tested the $0.2240 support area and it could correct higher in the short term.

Ripple price is down close to 6% and it broke the $0.2350 support area against the US dollar.
The price tested the $0.2240 support area and it is currently consolidating losses.
There is a contracting triangle forming with resistance near $0.2300 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price must climb above the $0.2300 level to start a recovery towards the $0.2450 level.

Ripple Price Could Correct Higher

Recently, we saw a strong decline in ripple from well above the $0.2650 level. XRP price broke many supports near $0.2500 and $0.2450 levels to enter a short term downtrend.

Moreover, there was a break below the $0.2350 support level and the price settled well below the 100 hourly simple moving average. The decline was such that the price traded below the $0.2280 level.

Finally, it found support near the $0.2240 level and it is currently consolidating losses. A weekly low is formed near $0.2232 and the price is testing the 23.6% Fib retracement level of the recent slide from the $0.2452 high to $0.2232 low.

More importantly, there is a contracting triangle forming with resistance near $0.2300 on the hourly chart of the XRP/USD pair. Therefore, a clear break above the triangle resistance could open the doors for a decent recovery in ripple towards the $0.2400 and $0.2450 levels.

An intermediate resistance is near the $0.2365 level. It is close to the 50% Fib retracement level of the recent slide from the $0.2452 high to $0.2232 low.

Finally, ripple price must climb above the $0.2450 and $0.2500 resistance levels to start a fresh increase in the coming days.

More Losses?

If ripple fails to correct above the $0.2300 and $0.2365 resistance levels, it could continue to move down. The first key support on the downside is near the $0.2240 level.

If there is a clear break below $0.2240 and $0.2232, the price could move down towards the $0.2200 level. Any further losses is likely to lead the price towards the $0.2050 level in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is still showing many bearish signs.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well below the 40 level, with bearish angle.

Major Support Levels – $0.2240, $0.2200 and $0.2050.

Major Resistance Levels – $0.2300, $0.2365 and $0.2450.

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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