Analysis

Ripple (XRP) Nosedives Below $0.30: Is This Fresh Decline or Just Correction?

Ripple declined heavily from well above $ 0.3200 against the US Dollar. XRP price even dived below $ 0.3000 and it could continue to move down in the near term.

  • Ripple price fell sharply after the bears were able to clear the $ 0.3000 support against the US dollar.
  • The price traded as low as $ 0.2677 and it is currently correcting losses.
  • There are two connecting bearish trend lines forming with resistance near $ 0.2950 and $ 0.3000 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price must climb back above $ 0.3000 to start a fresh increase in the coming sessions.

Ripple Price Could Extend Losses

In the past 3-4 sessions, ripple faced an increase in selling pressure below $ 0.3200. As a result, XRP declined heavily below the $ 0.3050 and $ 0.3000 support levels.

Moreover, there was a close below the $ 0.3000 support and the 100 hourly simple moving average. The price is down more than 10% and it traded as low as $ 0.2677. Recently, there was a minor upside correction above the $ 0.2800 level.

Besides, the price recovered above the 23.6% Fib retracement level of the recent dive from the $ 0.3194 high to $ 0.2677 low. However, ripple is facing a lot of hurdles on the upside near $ 0.2940 and $ 0.2950.

More importantly, there are two connecting bearish trend lines forming with resistance near $ 0.2950 and $ 0.3000 on the hourly chart of the XRP/USD pair.

Ripple Price

Ripple Price

The 50% Fib retracement level of the recent dive from the $ 0.3194 high to $ 0.2677 low is also acting as a hurdle for the bulls. Therefore, the bulls need to gain pace above the $ 0.2950 and $ 0.3000 resistance levels to push the price back into a positive zone.

If the bulls fail to gain strength above $ 0.2950, there is a risk of more losses. The first key support is near the $ 0.2800 level. If there is a clear break below $ 0.2800 and $ 0.2780, the bears are likely to aim a new weekly low below $ 0.2670.

Fresh Increase?

As mentioned, the bulls need to gain pace above the $ 0.2950 and $ 0.3000 resistance levels. If they succeed and ripple settles above $ 0.3000, there could be a fresh increase.

The next key resistance is near the $ 0.3200 area and the 100 hourly simple moving average, above which the price could revisit the $ 0.3400 resistance area.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 40 level, with negative signs.

Major Support Levels – $ 0.2800, $ 0.2780 and $ 0.2680.

Major Resistance Levels – $ 0.2940, $ 0.2950 and $ 0.3000.

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Analysis – NewsBTC

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