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Ripple corrected lower sharply and broke the $0.3000 support area against the US Dollar. XRP is now trading near the key $0.2640 support and it must break $0.2900 for a fresh increase.
- Ripple price is currently consolidating above the key $0.2640 support area against the US dollar.
- Bitcoin is also trading in a range above the key $10,500 support area.
- There is a major bearish trend line forming with resistance near $0.2860 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- A clear break above $0.2900 and $0.3000 is needed for a run towards the $0.3400 area.
Ripple Price Could Rally Once Again
This week, we saw a strong downside correction in ripple below the $0.3200 and $0.3000 support levels against the US Dollar. XRP price even settled below the $0.3000 area and the 100 simple moving average (4-hours).
Finally, it broke the $0.2800 support and tested the key $0.2640 support area. A swing low is formed near $0.2609 and the price is currently consolidating. It recovered above the 23.6% Fib retracement level of the recent decline from the $0.3089 high to $0.2609 low.
On the upside, there are many key hurdles forming for ripple near $0.2900 and $0.3000. Besides, there is a major bearish trend line forming with resistance near $0.2860 on the 4-hours chart of the XRP/USD pair.
The trend line coincides with the 50% Fib retracement level of the recent decline from the $0.3089 high to $0.2609 low. Above the trend line, the 100 simple moving average (4-hours) is positioned near the $0.2900 level.
Therefore, a clear break above the $0.2900 and $0.3000 levels is needed for a fresh increase in the near term. In the mentioned case, the price could rally towards the $0.3400 and $0.3500 levels
Major Breakdown Zone
The main support on the downside is near the $0.2640 level. If ripple price fails to continue above the $0.3000 resistance, there is a risk of a bearish breakdown below the $0.2640 support area.
The next key support is near the $0.2460 level, below which the bears are likely to aim a larger decline. In this case, the next target for the bears could be near the $0.2000 level in the coming days.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is about to move back into the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting high towards the 50 level.
Major Support Levels – $0.2640, $0.2450 and $0.2200.
Major Resistance Levels – $0.2860, $0.2900 and $0.3000.
