After a major decline, ripple price found support near the $0.3680 area against the US Dollar. The XRP/USD pair traded as low as $0.3686 and recently started an upside correction. There was a break above the $0.3800 and $0.3900 resistance levels. The price even broke the $0.4000 level, but the $0.4050 level acted as a strong resistance. A swing high is formed near $0.4048 and the price is currently well below the 100 hourly simple moving average.
There was a downward move below the $0.4000 level and the 23.6% Fib retracement level of the recent wave from the $0.3686 swing low to $0.4048 high. Ripple price even broke the $0.3900 level and spiked towards $0.3800. It seems like the 50% Fib retracement level of the recent wave from the $0.3686 swing low to $0.4048 high is currently acting as a support. Moreover, there is a key contracting triangle forming with resistance near $0.3960 on the hourly chart of the XRP/USD pair.
On the upside, the triangle resistance, $0.4000, and the 100 hourly SMA holds the key. A successful close above the 100 hourly SMA could trigger more gains. If there is a follow through above $0.4050, the price is likely to accelerate above the $0.4100 level. The next stop for the bulls could be $0.4220. Conversely, if there is a downside break below $0.3850 and 61.8% Fib retracement level of the recent wave from the $0.3686 swing low to $0.4048 high, then there could be more losses.
Looking at the chart, ripple price is currently consolidating below $0.4000 and $0.4050. The bulls need to gain pace above $0.4050 to start a fresh increase. If they continue to fail, the price is likely to move down below $0.3850 and $0.3800 in the near term.
Hourly MACD – The MACD for XRP/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level, with a bearish angle.
Major Support Levels – $0.3850, $0.3820 and $0.3700.
Major Resistance Levels – $0.3960, $0.4000 and $0.4050.
Author: Aayush Jindal