HomeAltcoin NewsRipple Price Analysis: Chances of More Downsides Below $0.40

Ripple Price Analysis: Chances of More Downsides Below $0.40

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  • Ripple price failed to stay above $0.5000 and declined sharply against the US dollar.
  • The price is now trading well below the $0.450 zone and the 55 simple moving average (4-hours).
  • There is a key declining channel forming with resistance near $0.4320 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
  • The pair is likely to continue lower towards the $0.3500 support zone in the near term.

Ripple price is started a fresh decline below $0.5000 and $0.4500 against the US Dollar. XRP price is correcting losses, but it is likely to face sellers near $0.4400.

Ripple Price Analysis

After a spike above $0.6000, ripple price struggled to clear the key $0.6500 resistance against the US Dollar. The XRP/USD pair topped near the $0.6515 level and recently started a fresh decline.

There was a break below the $0.5000 support level and the 55 simple moving average (4-hours). The bears gained pace below the $0.4500 and $0.4000 support levels. It traded as low as $0.3646 before the price started an upside correction.

There was a break above the $0.3800 and $0.4000 levels. However, the price is facing resistance near $0.4320. The 23.6% Fib retracement level of the recent decline from the $0.6513 high to $0.3646 low.

Moreover, there is a key declining channel forming with resistance near $0.4320 on the 4-hours chart of the XRP/USD pair. If there is an upside break above the channel resistance, the price could correct higher towards the $0.4800 resistance and the 55 simple moving average (4-hours).

The next major resistance is near the $0.5050 level. It is close to the 50% Fib retracement level of the recent decline from the $0.6513 high to $0.3646 low.

Any more upsides might open the doors for a steady increase towards the $0.5800 and $0.6000 levels. Conversely, there is a risk of a fresh decline below the $0.4120 and $0.4050 levels. The first major support is near the $0.4000 level, below which the price could dive towards the $0.3500 level.

Ripple Price
Ripple Price

Looking at the chart, ripple price is clearly trading well below the $0.5000 zone and the 55 simple moving average (4-hours). Overall, the price is likely to continue lower towards the $0.3500 support zone in the near term.

Technical indicators

4 hours MACD – The MACD for XRP/USD is struggling to gain momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is still below the 50 level.

Key Support Levels – $0.4120, $0.4000 and $0.3500.

Key Resistance Levels – $0.4320 and $0.4800.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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