Ripple (XRP) Price Trading Near Make-or-Break Support Zone
Ripple price started a short term downside correction after trading towards $0.4100 against the US dollar.
The price declined below the $0.4000 support and recently tested the $0.3940 support area.
There is a key bullish trend line forming with support near $0.3945 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair could either break the $0.3940 support and extend losses or start a fresh increase.
Ripple price is currently trading near key support levels against the US Dollar, similar to bitcoin. XRP is likely to extend losses if the bulls fail to keep the price above $0.3940.
Ripple Price Analysis
After forming a support base near the $0.3840, ripple price started an upward move against the US Dollar. The XRP/USD pair gained bullish momentum and broke the $0.3940 and $0.4000 resistance levels. There was also a close above the $0.4000 level and the 100 hourly simple moving average. The price even broke the $0.4100 level and formed a swing high at $0.4108.
Recently, the price started a downside correction below the $0.4050 support. There was a break below the 50% Fib retracement level of the recent wave from the $0.3833 low to $0.4108 high. Ripple price even broke the $0.4000 support area. However, the decline was protected by the $0.3940 support area. Moreover, there is a key bullish trend line forming with support near $0.3945 on the hourly chart of the XRP/USD pair.
The 61.8% Fib retracement level of the recent wave from the $0.3833 low to $0.4108 high is also acting as a strong support for the bulls. It seems like the price is forming a breakout pattern near $0.3940. It could either start a fresh increase above $0.4000 or decline further below $0.3940. If there is a downside break, the price could even break the $0.3900 support area. The next key support is near the $0.3840 level.
Conversely, if the price stays above $0.3940, there could be a decent upward move. An immediate resistance is near $0.4000, above which the price might trade towards $0.4050 or even $0.4100. If there are more gains, the next stop for the bulls may be near the $0.4220 level.
Looking at the chart, ripple price is currently trading near an important support at $0.3940. If it stays above $0.3940, there could be a fresh increase. If not, there is a risk of more losses below $0.3900 and $0.3880.
Hourly MACD – The MACD for XRP/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 40 level, with a bearish angle.
Major Support Levels – $0.3940, $0.3880 and $0.3840.
Major Resistance Levels – $0.4000, $0.4050 and $0.4100.
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