- Ripple price started a downside correction below $0.50 against the US dollar.
- The price is now trading below $0.4800 and the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $0.4640 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair could rise again if it stays above the $0.4200 and $0.4000 support levels.
Ripple price is correcting gains from $0.520 against the US Dollar, unlike bitcoin. XRP price must stay above $0.4200 and $0.4000 to continue higher.
Ripple Price Analysis
After forming a base near the $0.4200 zone, ripple price started a fresh increase against the US Dollar. The XRP/USD pair was able to clear the $0.4500 resistance zone.
The price even broke the $0.5000 resistance and the 55 simple moving average (4-hours). XRP climbed above the $0.5050 resistance zone, but it faced sellers near the $0.5100 zone. A high was formed near $0.5092 and the price started a downside correction.
There was a move below the $0.5000 and $0.4800 levels. The price declined below the 50% Fib retracement level of the upward move from the $0.4176 swing low to $0.5092 high.
It is now trading below $0.4800 and the 55 simple moving average (4-hours). An initial support on the downside is near the $0.4390 level. It is near the 76.4% Fib retracement level of the upward move from the $0.4176 swing low to $0.5092 high.
The next major support is near the $0.4200 level. Any more losses could lead the price towards the $0.4000 level, below which the price might even test $0.3650.
On the upside, the price is facing resistance near $0.4640. There is also a major bearish trend line forming with resistance near $0.4640 on the 4-hours chart of the XRP/USD pair. The next major resistance is near the $0.4880 level.
A clear move above the $0.4880 resistance zone might start a fresh increase. In the stated case, the price could even surpass the $0.5100 resistance. Any more gains might send the price towards the $0.5500 resistance.
Looking at the chart, ripple price is now trading below the $0.4800 zone and the 55 simple moving average (4-hours). Overall, the price could rise again if it stays above the $0.4200 and $0.4000 support levels.
Technical indicators
4 hours MACD – The MACD for XRP/USD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is below the 50 level.
Key Support Levels – $0.4390, $0.4200 and $0.4000.
Key Resistance Levels – $0.4640 and $0.4880.
