BUY BITCOIN
Ripple failed to stay above the $0.2050 resistance and declined recently against the US Dollar. XRP is showing bearish signs and it could decline further below $0.1980 and $0.1960.
- Ripple traded as high as $0.2066 and recently started a fresh decline against the US dollar.
- The price is showing many bearish signs below the $0.2050 and $0.2020 levels.
- There was a break below a key ascending channel with support near $0.2015 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to continue lower below the $0.1980 and $0.1960 levels.
Ripple Price Could Decline Further
Recently, bitcoin topped near the $9,950 level and declined sharply. It prompted a bearish reaction in ripple from the $0.2066 high. It seems like XRP price failed to stay above the $0.2050 resistance and started a fresh decline.
There was a break below the $0.2040 and $0.2020 levels. The price declined below the 23.6% Fib retracement level of the upward move from the $0.1848 low to $0.2066 high.
More importantly, there was a break below a key ascending channel with support near $0.2015 on the hourly chart of the XRP/USD pair. Ripple is now testing the $0.2000 support area and the 100 hourly simple moving average.
If there is a downside break below the 100 hourly SMA, the price could test the $0.1980 support. It is close to the 50% Fib retracement level of the upward move from the $0.1848 low to $0.2066 high.
If there are more downsides, the price could continue to move down towards the $0.1920 support. Any further losses could open the doors for a larger decline towards the $0.1840 support area in the near term.
Chances of an Upside Break in XRP
On the upside, an initial resistance is near the $0.2050 level. There is also a connecting bearish trend line with resistance near $0.2050 on the same chart. If ripple breaks the bearish trend line, there are chances of more gains above the $0.2066 high.
The next key resistance is near the $0.2095 and $0.2100 levels. Any further gains could lead the price towards the $0.2220 zone in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is currently gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well below the 50 level.
Major Support Levels – $0.2000, $0.1960 and $0.1920.
Major Resistance Levels – $0.2050, $0.2100 and $0.2200.
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
