Ripple price was rejected from the $0.5520 level recently against the US Dollar. XRP/USD may range trade in the short term, but it could decline further.
Key Talking Points
Ripple price failed to capitalize and found a key resistance around $0.5520 against the US Dollar.
There is a significant bearish trend line forming with resistance around $0.5200 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
The pair may correct higher, but it will most likely face sellers near $0.5100 and $0.5200.
Ripple Price Forecast
Earlier this week, there was a minor upside reaction in Ripple price from the $0.4532 low against the US Dollar. The XRP/USD pair traded higher, but it failed to break a major resistance zone near $0.5520.
The price also failed to stay above the 100 simple moving average (2-hours) and $0.5200. It declined and traded below the 50% Fib retracement level of the last upside wave from the $0.4532 low to $0.5529 high.
It even traded below the $0.4950 pivot level and tested the $0.4750 support. The price is now trading well below the $0.5200 level and the 100 simple moving average (2-hours).
The current downside wave is finding support near the 76.4% Fib retracement level of the last upside wave from the $0.4532 low to $0.5529 high. There could be a minor upside wave towards the $0.5100 level and the 100 SMA.
However, there are many barriers on the upside near the $0.5100 and $0.5200 levels. There is also a significant bearish trend line forming with resistance around $0.5200 on the 2-hours chart of the XRP/USD pair.
Should the price correct higher from the current levels, it may find hurdles near $0.5100, 100 SMA and $0.5200. Only a close above the trend line resistance at $0.5200 may decrease selling pressure.
Above $0.5200, the price faces a tough challenge near the $0.5520 level. On the downside, supports are at $0.4750 and $0.4550. A break below these levels could put a lot of pressure towards $0.4200.
Trade safe traders and do not overtrade!
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