Ripple started an upside correction after trading as low as $0.1690 against the US Dollar. XRP price is currently facing a strong resistance at $0.1800 and it could resume its decline.
- Ripple corrected higher above the $0.1720 and $0.1750 resistance levels against the US dollar.
- The price is currently struggling to clear the $0.1800 resistance region and the 100 hourly SMA.
- There is a connecting bearish trend line forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair must settle above the $0.1800 resistance to start a steady recovery in the near term.
Ripple Price Could Fail Near $0.1800
This past week, ripple price extended its decline below the $0.1900 support. XRP broke many key supports near $0.1880 to move further into a bearish zone.
More importantly, there was a close below the $0.1800 level and the 100 hourly simple moving average. It traded to a new monthly low at $0.1690 and recently started an upside correction. The bulls pushed the price above the $0.1720 and $0.1750 resistance levels.
The price even spiked above the 50% Fib retracement level of the downward move from the $0.1866 high to $0.1690 low. However, the previous support near the $0.1800 level is now acting as a strong resistance for the bulls.
Ripple price trades below $0.1800. Source: TradingView.com
There is also a connecting bearish trend line forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair. Above the trend line, the 61.8% Fib retracement level of the downward move from the $0.1866 high to $0.1690 low is near $0.1800 and the 100 hourly simple moving average.
The bulls need to clear the $0.1800 resistance level and the 100 hourly SMA to start a steady increase. If they succeed, the price could recover towards the $0.1880 and $0.1900 resistance levels.
Fresh Decline in XRP?
Conversely, ripple price might start a fresh drop from the $0.1800 resistance level. An initial support is near the $0.1760 and $0.1750 levels.
If the price settles below the $0.1750 support, it could continue to move down and resume its decline. The next crucial support is at $0.1700, followed by $0.1680.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is slowly moving back into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is declining and it is currently below the 50 level.
Major Support Levels – $0.1750, $0.1700 and $0.1680.
Major Resistance Levels – $0.1780, $0.1800 and $0.1880.
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by Aayush Jindal on June 29, 2020 at 10:58AM
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