Ripple Price (XRP) Testing Crucial Support Post Bitcoin’s Correction

  • Ripple price declined again after it failed to clear the $0.4070 resistance zone against the US dollar.
  • The price is under a lot of pressure and it recently broke the $0.3950 support area.
  • There is a key declining channel forming with resistance near $0.3920 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price could either break the $0.3840 support or bounce back above $0.3950 in the near term.

Ripple price failed to continue higher above against the US Dollar after bitcoin declined from $12,000. XRP price is currently at a risk of more losses below the $0.3840 support area.

Ripple Price Analysis

Recently, bitcoin price failed to clear the $12,000 resistance and declined below $11,500. It sparked bearish moves in ripple price as it failed to clear the $0.4070 level against the US Dollar. The XRP/USD pair topped near the $0.4065 level and started a fresh decline. It broke the $0.4020 and $0.4000 support levels. Moreover, there was a break below the $0.3950 support plus the 100 hourly simple moving average.

The decline was such that the price tested the main $0.3840 support area. The price is now trading just above the $0.3840 support and it could correct in the short term. An initial resistance is near the $0.3900 level and the 23.6% Fib retracement level of the recent decline from the $0.4065 high to $0.3837 low. Moreover, there is a key declining channel forming with resistance near $0.3920 on the hourly chart of the XRP/USD pair.

Above the channel resistance, the next key resistance is near the $0.3950 level. It coincides with the 50% Fib retracement level of the recent decline from the $0.4065 high to $0.3837 low. If there is an upside break above the $0.3950 resistance, there could be a fresh increase towards the $0.4070 level. Conversely, if ripple price fails to correct above $0.4920 or $0.4950, it could slide further.

The main supports are $0.3840 and $0.3820. If there is a downside break below $0.3820, the price could decline heavily. The next major support is near the $0.3750 level, below which there is a risk of more losses towards the $0.3720 level.

Looking at the chart, ripple price is clearly trading just above a crucial support near $0.3840. If the bulls fail to defend more losses, there could be a sharp dip below $0.3800 in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is currently gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently declining sharply and it is well below the 40 level.

Major Support Levels – $0.3840, $0.3820 and $0.3750.

Major Resistance Levels – $0.3920, $0.3950 and $0.4000.

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