Ripple retested the $0.7500 resistance level before a sharp decline against the US Dollar, similar to bitcoin and ETH. XRP price is holding the $0.5500 support, but it might even test $0.5000.
- Ripple started a strong downside correction after it failed to clear $0.7500 against the US dollar.
- The price broke the $0.6000 support, but it is still well above the 100 simple moving average (4-hours).
- There was a break below a key contracting triangle with support near $0.6465 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair could revisit the main $0.5000 support before the fresh increase in the near term.
Ripple’s XRP Price Approaching Key Supports
There was a strong rejection pattern formed in ripple’s XRP price near $0.7200 and $0.7500. The price started a strong decline and broke many supports near the $0.6200 level.
Recently, the crypto market saw a sharp correction, with a strong decline in bitcoin and Ethereum. XRP also followed a similar pattern and declined over 10% below $0.6000. There was also a break below a key contracting triangle with support near $0.6465 on the 4-hours chart of the XRP/USD pair.
The pair even broke the $0.5800 support zone, but it is still well above the 100 simple moving average (4-hours). There was a break below the 50% Fib retracement level of the upward wave from the $0.4085 swing low to $0.7876 swing high.
Source: XRPUSD on TradingView.com
It is now trading near the $0.5500 support level. The 61.8% Fib retracement level of the upward wave from the $0.4085 swing low to $0.7876 swing high is also acting as a support.
If there are more losses, the price could decline below the $0.5500 and $0.5400 levels. The next major support sits at $0.5000, where the bulls are likely to take a strong stand.
Upsides Limited in XRP?
If ripple stays above the $0.5500 support, it could recover higher. An initial resistance on the upside is near the $0.5850 and $0.6000 levels.
A clear break above the $0.6000 resistance level could open the doors for a fresh increase. In the stated case, the price is likely to rise steadily towards the $0.6500 level.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is losing pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently close to the 50 level.
Major Support Levels – $0.5500, $0.5200 and $0.5000.
Major Resistance Levels – $0.5850, $0.6000 and $0.6500.
by Aayush Jindal on November 26, 2020 at 12:58PM
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