- Ripple price topped near the $0.3480 area and started a strong decline against the US dollar.
- The price is down more than 15% and broke the $0.3000 support area.
- There was a break below a key bullish trend line with support near $0.2885 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair tested the $0.2680 support area and it is now showing a few bearish signs.
Ripple price started a strong bearish wave from well above $0.3400 against the US Dollar. XRP price is now trading below $0.3000 and it could continue to move down.
Ripple Price Analysis
After a sharp rally, ripple price tested the $0.3480 and $0.3500 resistance levels against the US Dollar. XRP/USD failed to continue above $0.3500 and formed a short term top near the $0.3473 level.
As a result, there was a strong decline below the $0.3080 and $0.3000 support levels. Besides, there was a close below the $0.3000 area and the 55 simple moving average (4-hours).
More importantly, there was a break below a key bullish trend line with support near $0.2885 on the 4-hours chart of the XRP/USD pair. Finally, the price broke the $0.2800 support area and tested the $0.2680 region.
A low is formed near $0.2686 and the price is currently consolidating losses. An initial resistance is near the $0.2880 level. It coincides with the 23.6% Fib retracement level of the downward move from the $0.3473 high to $0.2686 low.
Moreover, the broken bullish trend line might act as a resistance near the $0.2885 level. The next key resistance is near the $0.3000 level and the 55 simple moving average (4-hours).
Any further gains could lead the price towards the $0.3080 resistance area. It is close to the 50% Fib retracement level of the downward move from the $0.3473 high to $0.2686 low.
Therefore, the price must move back above $0.3000 and $0.3080 to start another rally. Conversely, the price could fail to move above $0.3000 or the 55 simple moving average (4-hours).
In the mentioned bearish case, the price could continue to move down towards the $0.2600 and $0.2500 levels in the near term.
Looking at the chart, ripple price is struggling to hold the $0.2680 support level. Therefore, there are chances of another drop and the price could revisit the $0.2400 area.
4 hours MACD – The MACD for XRP/USD is 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 – $0.2680, $0.2585 and $0.2400.
Key Resistance Levels – $0.3000 and $0.3080.