Bitcoin Trimming Gains While Ripple Price (XRP) Extending Losses

• Ripple price failed to hold the key $0.4500 support and declined heavily against the US dollar.
• The price even broke the key $0.4220 support level and it is now trading below $0.4150.
• There is a short term contracting triangle forming with resistance near $0.4120 on the hourly chart of the XRP/USD pair (data source from Kraken).
• Ethereum price also declined heavily and it even broke the key $300 support area.

Ripple price is facing a strong selling interest against the US Dollar, while bitcoin is trimming gains. XRP price could recover only if it corrects above the $0.4220 level.

Ripple Price Analysis

Recently, bitcoin price started a major correction below $12,000, putting pressure on ripple price below $0.4500 against the US Dollar. The XRP/USD pair declined heavily and broke a few important supports near $0.4500 and $0.4450. There was also a close below the $0.4400 level and the 100 hourly simple moving average. It opened the doors for more losses and the price declined below $0.4350 and $0.4220.

Moreover, the decline was such that the price dived below the $0.4000 support. A swing low was formed at $0.3878 and the price is currently correcting higher. Ripple traded above $0.4000, but it facing many hurdles near $0.4120. The 23.6% Fib retracement level of the recent decline from the $0.4948 high to $0.3878 low is also near the $0.4130 level.

Besides, there is a short term contracting triangle forming with resistance near $0.4120 on the hourly chart of the XRP/USD pair. If there is an upside break, the $0.4220 level may be the next hurdle. If the bulls gain pace above $0.4220, the price could start a decent recovery. In the mentioned case, the price could test $0.4400 or the 50% Fib retracement level of the recent decline from the $0.4948 high to $0.3878 low.

On the downside, if there is a fresh decline below $0.4000, the price could resume its slide. An immediate support is at $0.3880, below which there is a risk of a downside break below the $0.3880 swing low. The next key support is near the $0.3500 level, where buyers are likely to emerge.

Looking at the chart, ripple price clearly declined heavily and broke a few key supports near $0.4400 and $0.4200. Therefore, to start a fresh increase, it must regain the $0.4200 and $0.4400 levels. If not, there are chances of more losses below the $0.4000 support.

Technical Indicators

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

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently struggling to move above the 40 level.

Major Support Levels – $0.4000, $0.3880 and $0.3500.

Major Resistance Levels – $0.4120, $0.4220 and $0.4400.

The post Bitcoin Trimming Gains While Ripple Price (XRP) Extending Losses appeared first on NewsBTC.

by Aayush Jindal on June 28, 2019 at 09:38AM