Charted: Ripple (XRP) Testing Crucial Support, Why It Could Nosedive

Ripple is struggling to stay above the key $0.2600 support against the US Dollar. XRP price could nosedive if there is a close below $0.2600 and $0.2550.

  • Ripple is showing a few bearish signs below the $0.2750 and $0.2800 resistance levels against the US dollar.
  • The price is testing the $0.2600 support and it is well below the 100 simple moving average (4-hours).
  • There is a key bearish trend line forming with resistance near $0.2720 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair could either rally above $0.2750 or it might slide towards the $0.2150 support.

Ripple’s XRP Price is Struggling To Recover

After struggling to clear the $0.3120 resistance, ripple’s XRP price started a fresh decline. The price declined heavily below the $0.2800 support level and it even spiked below $0.2600.

A low was formed near $0.2390 before the price started an upside correction. There was a break above the $0.2500 and $0.2550 levels. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.3306 swing high to $0.2390 low.

However, the price seems to be facing resistance near the $0.2850 level. There is also a key bearish trend line forming with resistance near $0.2720 on the 4-hours chart of the XRP/USD pair.

Ripple (XRP)

Source: XRPUSD on TradingView.com

The trend line is close to the 50% Fib retracement level of the downward move from the $0.3306 swing high to $0.2390 low. XRP is now testing the $0.2600 support and it is well below the 100 simple moving average (4-hours).

If there is a downside break below the $0.2600 support level, the bears are likely to gain strength. In the stated case, there is a risk of a sharp decline towards the $0.2400 and $0.2350 levels. The price could even revisit the $0.2150 level in the near term.

Fresh Increase in XRP?

If ripple stays above the $0.2600 support zone, there are chances of a fresh increase. Th first key resistance is near the trend line and $0.2750. The next major resistance is near the $0.2800 level and the 100 SMA (H4).

A successful close above the $0.2800 level could open the doors for a surge towards the $0.3000 and $0.3120 levels.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is showing negative signs in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is well below the 50 level.

Major Support Levels – $0.2600, $0.2450 and $0.2150.

Major Resistance Levels – $0.2750, $0.2800 and $0.35000.



from NewsBTC https://www.newsbtc.com/analysis/xrp/ripple-xrp-testing-crucial-support-0-26/

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