Ripple (XRP) Takes A Bit Hit But Here Is Why It Could Correct In Short-Term

Ripple failed to stay above the $0.2740 support and extended its decline against the US Dollar. XRP price is currently testing the key $0.2650 support and it could correct higher

  • Ripple price is down 3% and it traded below the $0.2740 support against the US dollar.
  • The bulls are currently protecting the $0.2650 support area.
  • There is a short term ascending channel forming with resistance near $0.2720 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price could correct higher in the short term towards $0.2710 or $0.2740.

Ripple Price Testing Key Support

After ripple failed to clear the $0.2850 resistance, it started a fresh decline. XRP price traded below many supports, including $0.2800, $0.2740, and the 100 hourly simple moving average.

During the decline, there was a break below a key bullish trend line at $0.2765 and a bearish continuation pattern with support near $0.2720 on the hourly chart of the XRP/USD pair.

Ripple Price

Ripple Price

It opened the doors for more losses and the price traded close to the $0.2650 support area. A swing low is formed near $0.2638 and the price is currently consolidating losses. Ripple is trading near the 23.6% Fib retracement level of the recent decline from the $0.2852 high to $0.2638 low.

On the upside, there are a few key hurdles waiting near the $0.2710 level. The next key resistance on the upside is near the $0.2740 level (the previous support) and the 100 hourly simple moving average.

Besides, the 50% Fib retracement level of the recent decline from the $0.2852 high to $0.2638 low is also near the $0.2745 level to act as a resistance.

On the downside, there is a major support forming near the $0.2650 area. As long as the price is trading above $0.2650, there are chances of a short term correction. However, the bulls are likely to struggle near the $0.2740 level and the 100 hourly SMA.

More Losses?

If ripple fails to correct above the $0.2710 and $0.2740 resistance levels, it could extend its decline. The main support is near the $0.2650 level.

A successful close below the $0.2650 level might start a strong slide in the near term. The next target for the bears below $0.2650 and $0.2620 could be $0.2500.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting higher, but it is well below the 50 level.

Major Support Levels – $0.2650, $0.2620 and $0.2500.

Major Resistance Levels – $0.2710, $0.2740 and $0.2850.

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Source: Newsbtc

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