Ripple Price Analysis: XRP Revisits Key Support, Upsides Remain Capped

• Ripple price failed once again to stay above the $0.3400 resistance and declined against the US dollar.
• There was a break below a triangle with support at 0.3350 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair broke the 0.3200 and 0.3140 support levels to enter a bearish zone.
• The price could correct higher in the short term, but upsides are likely to be capped.

Ripple price declined heavily and settled below key supports against the US Dollar and bitcoin. XRP/USD is trading in a negative zone and it could continue to decline below $0.2950.

Ripple Price Analysis

Recently, ripple price gained bullish momentum after it broke the $0.3200 resistance against the US Dollar. The XRP/USD pair broke the $0.3300 and $0.3350 resistance levels. It even traded above the $0.3400 level, but buyers failed to capitalize. The pair topped near the $0.3420 level and later started a downside move. The decline was sharp as there was a break below the $0.3400 and $0.3200 support levels.

To initiate the decline, there was a break below a triangle with support at 0.3350 on the hourly chart of the XRP/USD pair. Sellers gained momentum and there was a close below the $0.3200 support and the 100 hourly simple moving average. Finally, there was a break below the $0.3000 support and the price traded as low as $0.2942. At the moment, the pair is correcting higher and traded near the $0.3000 level. There is also a declining channel in place with resistance near $0.3000 on the same chart. Should ripple break higher, it could revisit the $0.3050 zone. It coincides with the 23.6% Fib retracement level of the recent drop from the $0.3418 high to $0.2942 low.

To the upside, there are many hurdles for buyers near the $0.3140 level. The $0.3140 and $0.3150 levels acted as a support earlier and now they could prevent gains. Besides, the 50% Fib retracement level of the recent drop from the $0.3418 high to $0.2942 low is also near the $0.3180 level.

Looking at the chart, ripple price moved into a bearish zone below the $0.3200 and $0.3140 support levels. In the short term, there could be a minor correction above $0.3000 and $0.3020, but upsides are likely to remain contained. On the downside, an initial support is near the $0.2940 level, below which there is a risk of more losses below $0.2900.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is about to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting higher towards the 40 level.

Major Support Levels – $0.2950, $0.2940 and $0.2900.

Major Resistance Levels – $0.3050, $0.3140 and $0.3150.