Ripple Bulls Protecting Crucial Support But Can They Gain Momentum?
- Ripple price declined recently, but it managed to stay above the $0.3480 support against the US dollar.
- The price must stay above the $0.3480 support to avoid a downside break in the near term.
- There are a couple of short term bearish trend lines in place with resistance near $0.3595 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could start a major downside move if it settles below the $0.3480 support level in the near term.
Ripple price is currently consolidating against the US Dollar and bitcoin. XRP bulls might lose control if there is a downside break below the $0.3480 support area.
Ripple Price Analysis
In the past few sessions, we mostly saw range moves below $0.3700 in ripple price against the US Dollar. Earlier, the XRP/USD pair made a few attempts to break the $0.3700 and $0.3740 resistance levels. However, bulls failed to gain bullish momentum above $0.3740 and the price retreated from highs. It broke the $0.3650 support and settled below the $0.3600 level plus 100 hourly simple moving average. The recent swing low was formed at $0.3488 and the price is currently consolidating in a tight range.
It is currently trading near a short term bearish trend line at $0.3520 and the 23.6% Fib retracement level of the recent decline from the $0.3696 high to $0.3488 low. An immediate resistance is near the $0.3560 level and the 100 hourly SMA. Besides, there is another short term bearish trend line in place with resistance near $0.3595 on the hourly chart of the XRP/USD pair. It coincides with the 50% Fib retracement level of the recent decline from the $0.3696 high to $0.3488 low.
Therefore, a break above the trend line and $0.3600 might clear the path for more gains. The next key resistance could be near $0.3700, above which the price is likely to test the key $0.3740 resistance. On the other hand, the $0.3480 support holds the key. If bulls fail to protect the $0.3480 support, there could be a sharp drop. The next major support is near the $0.3250 level, where buyers are likely to emerge.
Looking at the chart, ripple price seems to be approaching the next key break either above $0.3600 or below $0.3480. As long as bulls continue to protect the $0.3480 support, there could be a solid upward move in the near term.
Hourly MACD – The MACD for XRP/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD bounced back recently and moved above the 50 level.
Major Support Levels – $0.3510, $0.3480 and $0.3250.
Major Resistance Levels – $0.3595, $0.3600 and $0.3700.
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