The ripple rose well above $ 0.6000 and $ 0.7000 before correcting against the US dollar. XRP price is now consolidating above $ 0.6200 and has its eye on the next crucial pause.
- Ripple started a strong rally after settling above the USD 0.3000 resistance against the US dollar.
- The price tested the $ 0.7500 resistance and was well above the simple moving average of 100 (4 hours).
- A large contraction triangle is forming on the 4-hour chart of the XRP / USD pair (data source from Kraken) with resistance near USD 0.7000.
- The pair could start a new rally once it hits the $ 0.7000 resistance zone.
Ripple’s XRP Price Holding Key Support
In the last technical analysis, we discussed the chances of a massive rally in Ripple’s XRP price towards $ 0.7500. The price followed a strong uptrend above $ 0.5000 and $ 0.6000.
It broke many hurdles near $ 0.7000 and settled well above the simple moving average of 100 (4 hours). Eventually the price tested the stated resistance zone of $ 0.7500. A new multi-month high was formed near $ 0.7870 before the price began a downward correction.
The XRP price corrected well below $ 0.7000 and $ 0.6500. It even tested the support level of $ 0.6000 but remained well above the simple moving average of 100 (4 hours). A swing low will be formed near $ 0.5662 before the price rose back to $ 0.7547.
Currently it is consolidating in a wide range below the $ 0.7000 level. There was a break below the 50% fib retracement level of the move up from the low of $ 0.5662 to the high of $ 0.7547.
Source: XRPUSD on TradingView.com
A large contraction triangle appears to be forming on the 4-hour chart of the XRP / USD pair with resistance near USD 0.7000. The triangle support is close to the Fib retracement level of 61.8% of the move up from the low of $ 0.5662 to the high of $ 0.7547.
If there is a significant break below the triangle support, XRP could re-invoke the USD 0.6000 support. Further losses could increase the likelihood of a breakout towards the $ 0.5200 level.
New rally in XRP?
If the ripple remains above the triangle support, an upside break above the $ 0.6800 and $ 0.7000 resistance levels could be attempted.
A significant break above the triangular resistance should open the doors for a new rally towards the $ 0.7500 and $ 0.7650 resistance levels.
4 Hour MACD – The MACD for XRP / USD is losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP / USD is correcting down towards 60.
Key support levels – $ 0.6350, $ 0.6200, and $ 0.6000.
Main Resistance Levels – $ 0.6800, $ 0.7000, and $ 0.7500.