Ripple started a downward correction below $ 0.6500 against the US dollar. The XRP price should be preparing for the next big step, similar to Bitcoin and ETH.
- The ripple was corrected lower but remained stable above $ 0.6000 against the US dollar.
- The price is battling for $ 0.6500 but is 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 a resistance at USD 0.6340.
- The pair is likely to rise above $ 0.6500 and $ 0.6800 as long as it stays above the $ 0.5500 support.
Ripple’s XRP price holds important supports
After trading just $ 0.4566, Ripple’s XRP price rose again above $ 0.5500. Bitcoin price surged back above USD 19,000 and ETH broke the USD 600 resistance.
XRP is now struggling to hit the $ 0.6350 and $ 0.6500 resistance levels. The last swing high was formed near $ 0.6896 before the price fell below $ 0.6000. It tested the 50% Fib retracement level of the move up from the low of $ 0.4566 to the high of $ 0.6896.
The price stayed well bid above $ 0.5750 and rebounded higher. It is now trading well above the USD 0.6000 support and the simple moving average of 100 (4 hours).
Source: XRPUSD on TradingView.com
More importantly, a large contraction triangle is forming on the 4-hour chart of the XRP / USD pair with a resistance of $ 0.6340. The triangle support is close to the 61.8% fib retracement level of the move up from the low of $ 0.4566 to the high of $ 0.6896.
If there is an upside break above the triangular resistance, the price could try to clear the $ 0.6500 resistance level. A successful close above the $ 0.6500 resistance could push the price to the $ 0.7000 resistance level in the next three to four days.
Disadvantages breaking into XRP?
If the ripple doesn’t cross the $ 0.6340 and $ 0.6500 resistance levels, it can slowly move down. An initial downward move is near the $ 0.6000 level.
The first major support is now forming near the USD 0.5750 level. The main support is near the $ 0.5500 level, below which the price may even struggle to stay above the simple moving average of 100 (4 hours).
4 Hour MACD – The MACD for XRP / USD is losing pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP / USD is currently just below the 50 level.
Major support levels – $ 0.6000, $ 0.5750, and $ 0.5500.
Main Resistance Levels – $ 0.6340, $ 0.6500, and $ 0.7000.