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HomeAltcoin NewsRipple Price Analysis: XRP At Risk Of Further Downsides

Ripple Price Analysis: XRP At Risk Of Further Downsides

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  • Ripple price is currently declining and trading well below $0.2700 against the US dollar.
  • The price is likely to continue lower and it may even test the $0.2420 support area.
  • There is a major declining channel forming with resistance near $0.2635 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
  • The price could only start a decent recovery once it settles above the $0.2760 resistance area.

Ripple price is following a downtrend below the $0.2760 support against the US Dollar. XRP price might continue to move down towards $0.2500 and $0.2420.

Ripple Price Analysis

In the past few days, ripple price extended its decline below the $0.2840 support area against the US Dollar. XRP/USD gained bearish momentum below the $0.2760 support and the 55 simple moving average (4-hours).

As a result, there was a break below the $0.2685 support area. Finally, the price broke the $0.2550 support area and traded to a new monthly low at $0.2522.

Recently, there was an upside correction above the $0.2600 level. Additionally, the price moved above the 23.6% Fib retracement level of the downward move from the $0.2840 high to $0.2522 low.

However, ripple is currently facing resistance near the $0.2650 level. More importantly, there is a major declining channel forming with resistance near $0.2635 on the 4-hours chart of the XRP/USD pair.

Above the channel resistance, the next key hurdle is near the $0.2680 level and the 55 simple moving average (4-hours). Besides, the 50% Fib retracement level of the downward move from the $0.2840 high to $0.2522 low is near the $0.2680 level.

The main resistance is near the $0.2750 level, above which the price is likely to continue higher. The final barrier for a fresh uptrend is near the last breakdown level at $0.2840.

On the downside, there is a short-term support near the $0.2550 and $0.2520 levels. If the price fails to hold the $0.2520 support, there is a risk of more losses below the $0.2500 level. The next major stop for the bulls may perhaps be near the $0.2420 level.

Ripple Price
Ripple Price

Looking at the chart, ripple price is clearly following a bearish path below $0.2660 and $0.2750. Therefore, the bears are likely to aim more losses below the $0.2500 support. Conversely, the bulls need to gain strength above $0.2660 and $0.2750 to push the price back into a positive zone.

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 currently well below the 50 level, with bearish signs.

Key Support Levels – $0.2520, $0.2500 and $0.2420.

Key Resistance Levels – $0.2660 and $0.2750.

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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