Analysis

A Key Trend is Forming For Ripple (XRP) and a Swift Rally Could Occur

Ripple is currently consolidating above the $ 0.2000 support against the US Dollar. XRP price is likely to start a strong increase above $ 0.2100 as long as it is above the 100 SMA (H4).

  • Ripple price is currently trading nicely above the main $ 0.2000 support zone against the US dollar.
  • The price is facing a few key resistances near the $ 0.2040 and $ 0.2075 levels.
  • There is a major declining channel forming with resistance near $ 0.2040 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair is likely to accelerate higher if there is a clear break above $ 0.2075.

Ripple Price Holding Crucial Uptrend Support

In the past few days, ripple followed a bearish path below the $ 0.2100 pivot level. XRP price broke the $ 0.2020 support zone, but it remained well bid above the $ 0.2000 support level.

The price is currently consolidating above the $ 0.2000 support and the 100 simple moving average (4-hours). The last swing high was near $ 0.2073 before the price declined towards $ 0.2000.

A low is formed near $ 0.1986 and the price is currently rising. XRP is trading above the 50% Fib retracement level of the recent decline from the $ 0.2073 high to $ 0.1986 low. It seems like there is a major declining channel forming with resistance near $ 0.2040 on the 4-hours chart of the XRP/USD pair.

Ripple Price

Ripple Price

The channel resistance is close to the 61.8% Fib retracement level of the recent decline from the $ 0.2073 high to $ 0.1986 low. If there is an upside break above the channel resistance, the price could test the key $ 0.2075 resistance zone.

A successful close above the $ 0.2075 resistance zone could open the doors for a larger upward move. The next major resistance is near the $ 0.2140 level, above which the bulls are likely to aim more gains towards $ 0.2250.

More Losses in XRP?

On the downside, there is a crucial support forming near $ 0.2000 and the 100 simple moving average (4-hours). If ripple fails to stay above the $ 0.2000 support, there is a risk of a larger decline.

A successful close below the $ 0.2000 support may perhaps lead the price towards the $ 0.1920 and $ 0.1900 support levels in the near term.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is slowly gaining momentum in the bullish zone.

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

Major Support Levels – $ 0.2000, $ 0.1920 and $ 0.1900.

Major Resistance Levels – $ 0.2040, $ 0.2075 and $ 0.2140.

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Risk disclaimer: 76.4% of retail CFD accounts lose money.

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Analysis – NewsBTC

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