Ripple Price Analysis: XRP Testing Crucial Support, Bounce Incoming?

Ripple Price Analysis: XRP Testing Crucial Support, Bounce Incoming?

• Ripple price failed to break the $0.3500 resistance and declined sharply against the US dollar.
• There was a sharp decline below the $0.3260 and $0.3120 support levels.
• There is a significant bullish trend line formed with support at $0.3010 on the 4-hours chart of the XRP/USD pair (data source from Poloniex).
• The price is clearly trading above key supports and it could bounce back towards $0.3200.

Ripple price declined sharply after it was rejected near the $0.3500 zone against the US Dollar. XRP is currently testing an important support and it could bounce back towards $0.3200 and $0.3250.

Ripple Price Analysis

The past few hours turned out to be game changer for bitcoin, Ethereum, bitcoin cash, eos and ripple price against the US Dollar. Earlier, the XRP/USD pair climbed higher and traded above the $0.3260 and $0.3400 resistance levels. It tested the key $0.3500 resistance area, where sellers emerged. As a result, there was a sharp downward move and the price declined below $0.3310 and $0.3260. There was even a close below the $0.3250 support and the 55 simple moving average (4-hours).

Sellers remained in action and the price traded below the $0.3110 support. However, the decline was protected near a crucial support at $0.3000. Moreover, there is a significant bullish trend line formed with support at $0.3010 on the 4-hours chart of the XRP/USD pair. The pair traded as low as $0.3002 and it is currently correcting higher. An initial resistance is near the $0.3125 level. It coincides with the 23.6% Fib retracement level of the last drop from the $0.3515 high to $0.3002 low.

If there is an upside break above the $0.3125 resistance, the price could trade towards the $0.3250 and $0.3260 resistances. Besides, the 50% Fib retracement level of the last drop from the $0.3515 high to $0.3002 low is positioned near the $0.3258 level. Therefore, if the price corrects higher, it could face a strong barrier near the $0.3250 and $0.3260 resistances. Above $0.3260, the price could revisit the $0.3500 hurdle, which is a solid resistance.

Looking at the chart, ripple price is under a lot of pressure below $0.3125 and $0.3160. Having said that, the price is trading near a major support at $0.3000. Thus, there are high chances of a short-term bounce above the $0.3125 and $0.3150 levels. If there is a downside break below $0.3000, the price could decline to $0.2850.

Technical indicators

4 hours MACD – The MACD for XRP/USD is currently placed heavily in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for XRP/USD declined sharply and settled below the 40 level.

Key Support Levels – $0.3020, $0.3000 and $0.2850.

Key Resistance Levels – $0.3125 and $0.3260.

Tags: Ripple, XRP

Published at Mon, 25 Feb 2019 10:00:17 +0000