Ripple Price Analysis: XRP/USD’s Downside Thrust and Reversal
- Ripple price declined sharply, but the $0.4340 support acted as a solid support against the US dollar.
- There is a connecting bearish trend line formed with resistance at $0.4485 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair could find sellers near the $0.4485 and $0.4500 levels, but dips remain supported.
Ripple price declined recently against the US Dollar and Bitcoin. However, XRP/USD found a strong buying interest near $0.4340 and recovered nicely.
Ripple Price Analysis
There was yet another rejection noted near the $0.4600 level in ripple price against the US Dollar. As a result, there was a sharp downside move in the XRP/USD pair below the $0.4500 support. The price surpassed a major bullish trend line with support at $0.4550 on the hourly chart. Moreover, there was a break below the $0.4480 level and the 100 hourly simple moving average.
The decline was such that there was a spike below the $0.4340 support area. However, the price recovered sharply and moved back above $0.4340 and $0.4400. The current price action is positive above the 50% Fib retracement level of the last decline from the $0.4603 high to $0.4263 low. On the upside, the price may face sellers near the $0.4500 level. There is also a connecting bearish trend line formed with resistance at $0.4485 on the hourly chart of the XRP/USD pair. Besides, the 61.8% Fib retracement level of the last decline from the $0.4603 high to $0.4263 low is at $0.4473. Therefore, the price may find a strong selling interest near $0.4480 and $0.4500.
Looking at the chart, ripple price is showing positive signs above $0.4400. If it declines once again, the $0.4340 support is likely to hold losses in the near term. To the topside, a break above $0.4500 is needed for an upside acceleration towards $0.4600.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is back above the 50 level.
Major Support Level – $0.4340
Major Resistance Level – $0.4500