Ripple retested the $ 0.7500 resistance level before falling sharply against the US dollar, similar to Bitcoin and ETH. XRP price holds the support at $ 0.5500 but could test as high as $ 0.5000.
- Ripple began a sharp downward correction after failing to clear $ 0.7500 against the US dollar.
- Price broke the $ 0.6000 support but is still well above the simple moving average of 100 (4 hours).
- The 4-hour chart of the XRP / USD pair (data source from Kraken) broke below a major contraction triangle with support near USD 0.6465.
- The pair could re-examine the $ 0.5000 main support before rising again in the near future.
Ripple’s XRP Price Approaching Key Supports
There was a strong rejection pattern in Ripple’s XRP price near $ 0.7200 and $ 0.7500. The price began to decline sharply, breaking many supports near the $ 0.6200 level.
Recently, the crypto market saw a sharp correction with a sharp drop in Bitcoin and Ethereum. XRP also followed a similar pattern, falling over 10% below $ 0.6000. There was also a break below a major contraction triangle with support near USD 0.6465 on the 4-hour chart for the XRP / USD pair.
The pair even broke the USD 0.5800 support zone but is still well above the 100 (4 hour) simple moving average. There was a break below the 50% fib retracement level of the upside wave from the low of $ 0.4085 to the high of $ 0.7876.
Source: XRPUSD on TradingView.com
It is now trading near the USD 0.5500 support level. The 61.8% Fib retracement level of the upward wave from the swing low of $ 0.4085 to the swing high of $ 0.7876 also acts as support.
If there are more losses, the price could drop below the $ 0.5500 and $ 0.5400 levels. The next big support is at $ 0.5000, which is where the bulls are likely to take a strong position.
Upsides Limited in XRP?
If the ripple stays above the USD 0.5500 support, it could rebound higher. Initial resistance to the upside is near the $ 0.5850 and $ 0.6000 levels.
A sharp break above the $ 0.6000 resistance level could open the doors for a new move higher. In the case mentioned, the price should rise steadily to the level of USD 0.6500.
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 close to the 50 level.
Major support levels – $ 0.5500, $ 0.5200, and $ 0.5000.
Main Resistance Levels – $ 0.5850, $ 0.6000, and $ 0.6500.