Ripple (XRP) Price Trading Near Make-or-Break Support Zone
- Ripple price started a short term downside correction after trading towards $0.4100 against the US dollar.
- The price declined below the $0.4000 support and recently tested the $0.3940 support area.
- There is a key bullish trend line forming with support near $0.3945 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could either break the $0.3940 support and extend losses or start a fresh increase.
Ripple Price Analysis
After forming a support base near the $0.3840, ripple price started an upward move against the US Dollar. The XRP/USD pair gained bullish momentum and broke the $0.3940 and $0.4000 resistance levels. There was also a close above the $0.4000 level and the 100 hourly simple moving average. The price even broke the $0.4100 level and formed a swing high at $0.4108.
Recently, the price started a downside correction below the $0.4050 support. There was a break below the 50% Fib retracement level of the recent wave from the $0.3833 low to $0.4108 high. Ripple price even broke the $0.4000 support area. However, the decline was protected by the $0.3940 support area. Moreover, there is a key bullish trend line forming with support near $0.3945 on the hourly chart of the XRP/USD pair.
The 61.8% Fib retracement level of the recent wave from the $0.3833 low to $0.4108 high is also acting as a strong support for the bulls. It seems like the price is forming a breakout pattern near $0.3940. It could either start a fresh increase above $0.4000 or decline further below $0.3940. If there is a downside break, the price could even break the $0.3900 support area. The next key support is near the $0.3840 level.
Conversely, if the price stays above $0.3940, there could be a decent upward move. An immediate resistance is near $0.4000, above which the price might trade towards $0.4050 or even $0.4100. If there are more gains, the next stop for the bulls may be near the $0.4220 level.
Looking at the chart, ripple price is currently trading near an important support at $0.3940. If it stays above $0.3940, there could be a fresh increase. If not, there is a risk of more losses below $0.3900 and $0.3880.
Hourly MACD – The MACD for XRP/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 40 level, with a bearish angle.
Major Support Levels – $0.3940, $0.3880 and $0.3840.
Major Resistance Levels – $0.4000, $0.4050 and $0.4100.