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HomeAltcoin NewsRipple Price Analysis: Risk of a Sharp Drop Below $0.265

Ripple Price Analysis: Risk of a Sharp Drop Below $0.265

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  • Ripple price is showing a lot of bearish signs below the $0.3000 level against the US dollar.
  • The price is still holding the key $0.2550 support level, but it is well below the 55 simple moving average (4-hours).
  • There is a major contracting triangle forming with support near $0.2720 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
  • The pair could start a strong decline if it breaks the $0.2720 and $0.2680 support levels.

Ripple price is struggling to start a decent recovery above $0.3000 against the US Dollar. XRP price could dive below $0.2650 and $0.2550 unless there is a close above $0.3000.

Ripple Price Analysis

Recently, ripple price made an attempt to settle above $0.3000 against the US Dollar, but it failed. The XRP/USD pair traded as high as $0.3104 and started a fresh decline.

The pair broke many important hurdles near $0.2950 and $0.2880 to move into a bearish zone. There was also a break below the 50% Fib retracement level of the upward move from the $0.2527 swing low to $0.3104 high.

The price is now trading well below the $0.3000 level and the 55 simple moving average (4-hours). There is also a major contracting triangle forming with support near $0.2720 on the 4-hours chart of the XRP/USD pair. The triangle support is close to the 61.8% Fib retracement level of the upward move from the $0.2527 swing low to $0.3104 high.

If there is a downside break below the triangle support and $0.2650, the price could continue to move down towards the main $0.2550 support. Any more losses might start a sustained decline towards the $0.2000 and $0.1800 levels.

Conversely, the price could break the triangle resistance at $0.2815 to start a steady increase. The next major resistance is near the $0.3000 level and the 55 simple moving average (4-hours).

To start a strong increase and recovery, the price must settle above $0.3000, the 55 simple moving average (4-hours), and the $0.3100 zone.

Ripple Price
Ripple Price

Looking at the chart, ripple price is clearly trading in a bearish zone below the $0.3000 pivot level and the 55 simple moving average (4-hours). Overall, the price could start a strong decline if it breaks the $0.2720 and $0.2680 support levels.

Technical indicators

4 hours MACD – The MACD for XRP/USD is currently gaining momentum in the bearish zone.

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

Key Support Levels – $0.2720, $0.2650 and $0.2550.

Key Resistance Levels – $0.3000 and $0.3100.

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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