- Ripple price started a downside correction from the $0.3250 resistance zone against the US dollar.
- The price corrected lower, but it is holding the main $0.2800 support zone.
- There is a key declining channel forming with resistance near $0.2990 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair is likely to resume its upward move once it clears the $0.3000 and $0.3020 resistance levels.
Ripple price is trading in a positive zone above $0.2800 against the US Dollar. XRP price is likely to accelerate higher once is re-clears the $0.3000 resistance zone.
Ripple Price Analysis
After a strong rally to $0.3250, ripple price started a downside correction against the US Dollar. The XRP/USD pair broke the $0.3120 support level to enter a short-term bearish zone.
The price even spiked below the $0.3000 level and the 55 simple moving average (4-hours). However, the bulls were able to protect the $0.2800 support zone. A swing low is formed near $0.2800 and the price is slowly moving higher.
It is currently facing hurdles near the $0.2950 level. It is close to the 50% Fib retracement level of the downward move from the $0.3110 swing high to $0.2800 swing low. The 55 simple moving average (4-hours) is also acting as a hurdle near the $0.2950 level.
Moreover, there is a key declining channel forming with resistance near $0.2990 on the 4-hours chart of the XRP/USD pair. The channel resistance is close to the main $0.3000 pivot level.
The channel resistance is also near the 61.8% Fib retracement level of the downward move from the $0.3110 swing high to $0.2800 swing low. A successful break above the channel resistance zone could open the doors for a fresh rally.
The next major resistance is near the $0.3120 level, above which the price might surge higher towards the $0.3200 level. Conversely, the price might struggle to clear $0.2990 or $0.3000. On the downside, the price is likely to find a strong buying interest near the $0.2800 area, below which it could nosedive.
Looking at the chart, ripple price is clearly trading in a positive zone above the $0.2800 support. Therefore, the price is likely to resume its upward move once it clears the $0.3000 and $0.3020 resistance levels.
Technical indicators
4 hours MACD – The MACD for XRP/USD is slowly moving back into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently near the 50 level.
Key Support Levels – $0.2920, $0.2900 and $0.2800.
Key Resistance Levels – $0.3000 and $0.3120.