- Ripple price struggled to break the $0.3300 and $0.3250 resistance levels against the US dollar.
- There were many rejections noted near the $0.3250 resistance area.
- There is a significant contracting triangle formed with resistance near $0.3240 and $0.3265 on the 4-hours chart of the XRP/USD pair (data source from Poloniex).
- The price is likely to trade in a tight range above $0.3100 before the next crucial break.
Ripple price is preparing for the next significant break against the US Dollar. XRP could either rally above $0.3300 or decline sharply below the $0.3100 and $0.3000 support levels in the near term.
Ripple Price Analysis
Recently, there were swing bullish moves in bitcoin, Ethereum, bitcoin cash, eos and ripple against the US Dollar. Earlier, the XRP/USD pair declined below the $0.3100 support and traded as low as $0.3068. Later, there was a sharp recovery above $0.3100 and the 55 simple moving average (4-hours). The price even broke the $0.3200 resistance area. However, it faced a strong resistance near the $0.3250-0.3260 zone. As a result, there was a fresh decline below the $0.3200 support and the 55 simple moving average (4-hours).
There was a break below the 23.6% Fib retracement level of the last wave from the $0.3068 low to $0.3254 high. At the moment, the $0.3150 support is acting as a buy zone and preventing more losses. The 50% Fib retracement level of the last wave from the $0.3068 low to $0.3254 high is also acting as a support. More importantly, it seems like there is a significant contracting triangle formed with resistance near $0.3240 and $0.3265 on the 4-hours chart of the XRP/USD pair.
On the upside, there are many hurdles for buyers near $0.3250, $0.3300 and $0.3320. A convincing close above $0.3320 may perhaps open the doors for a decent upward move above $0.3400 or $0.3500. On the other hand, if there is a downside break below the $0.3100 support, there could be sharp losses. An immediate support is at $0.3000, below which the price could tumble below $0.2920.
Looking at the chart, ripple price is clearly preparing for a significant break either above $0.3320 or below $0.3100. If bitcoin price grinds above $4,000, there are chances of an upside break in XRP above $0.3320. If not, the price could decline heavily below $0.3100 and $0.3000 in the coming sessions. Below $0.3000 and $0.2920, the next support is at $0.2850.
4 hours MACD – The MACD for XRP/USD is slowly moving into the bearish zone, with a negative bias.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD just moved below the 50 level, with a bearish angle.
Key Support Levels – $0.3100, $0.3000 and $0.2920.
Key Resistance Levels – $0.3250 and $0.3300.