Ripple (XRP) Bulls Facing Uphill Task & Risk of Short Term Correction Escalates
Ripple is facing a significant resistance near the $0.2900 area against the US Dollar. XRP price could decline a few points towards $0.2700 before it could rise again.
Ripple price is struggling to climb towards the main $0.3000 resistance area against the US dollar.
There were more than two rejections noted near the $0.2880-$0.2900 area.
There is a short term declining channel forming with resistance near $0.2825 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price could correct lower towards the $0.2700 and $0.2650 levels in the near term.
Ripple Price Facing Hurdles
After a successful break above the $0.2650 resistance, ripple extended its rise above the $0.2750 resistance. Moreover, XRP settled above the $0.2800 level and 100 hourly simple moving average.
However, the bulls struggled to clear the $0.2900 area and there was no test of the $0.3000 barrier. It seems like there were more than two rejections near the $0.2880-$0.2900 area.
The last swing high was near $0.2891 before ripple started a downward move. It broke the 23.6% Fib retracement level of the upward move from the $0.2634 low to $0.2891 high.
At the outset, there is a short term declining channel forming with resistance near $0.2825 on the hourly chart of the XRP/USD pair. The pair is currently testing the $0.2800 area and the 100 hourly SMA.
An immediate support is near the $0.2760 level. It coincides with the 50% Fib retracement level of the upward move from the $0.2634 low to $0.2891 high. If the price fails to stay above the $0.2760 support area, there is a risk of a drop towards the $0.2700 support area.
Any further losses may perhaps lead the price towards the $0.2640 support area or the last swing low. An intermediate support is seen near the $0.2695 level.
Test of $0.3000?
In the short term, there could be a minor decline below $0.2800 and $0.2750. However, the bulls are likely to protect strong losses in ripple below $0.2700 or $0.2650.
Once the current correction wave is complete, the price is likely to attempt a clear break above the $0.2900 resistance. In the mentioned case, there are chances of XRP hitting the main $0.3000 resistance in the near term.
Hourly MACD – The MACD for XRP/USD is slowly moving into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently declining and it is below the 50 level.
Major Support Levels – $0.2800, $0.2700 and $0.2640.
Major Resistance Levels – $0.2880, $0.2900 and $0.3000. The post appeared first on NewsBTC.