Ripple (XRP) Is Plunging and Remains Vulnerable To A Drop Below $0.24
Ripple started a strong decline after it broke the $0.2600 support area against the US Dollar. XRP price is currently down 10% and it is likely to extend losses below $0.2400.
Ripple price is plunging and it recently tumbled below the $0.2500 support against the US dollar.
The price is trading close to the $0.2400 support, below which there could be another slide.
There was a break below a major declining channel with support near $0.2470 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price is showing a lot of bearish signs and it could continue to move down below $0.2400.
Ripple Price Turns Bearish
After ripple settled below the $0.2700 level, the bears took control. As a result, XRP price started a major decline and traded below many supports near $0.2600 to enter a bearish zone.
Moreover, there was a break below the $0.2500 support level and the 100 hourly simple moving average. During the decline, there was a break below a major declining channel with support near $0.2470 on the hourly chart of the XRP/USD pair.
The pair even spiked below the $0.2400 support level. A new weekly low is formed near $0.2345 and the price is currently correcting higher. Ripple is trading above the 23.6% Fib retracement level of the recent drop from the $0.2588 high to $0.2345 low.
An initial resistance is near the broken channel support and the $0.2460 level. Besides, the 50% Fib retracement level of the recent drop from the $0.2588 high to $0.2345 low is sitting near the $0.2465 level to act as a major hurdle for the bulls.
Therefore, the bulls need to push the price above the $0.2465 and $0.2500 levels to start a decent recovery. The next key resistance is near the $0.2700 level and the 100 hourly simple moving average.
If ripple fails to correct above the $0.2450 and $0.2465 resistance levels, it could continue to move down. An initial support is near the $0.2380 and $0.2365 levels.
A successful break and close below the $0.2345 swing low is likely to accelerate decline. In the mentioned case, ripple price could decline heavily and trade towards the $0.2200 support level in the near term.
Hourly MACD – The MACD for XRP/USD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 40 level and near the oversold levels.
Major Support Levels – $0.2365, $0.2345 and $0.2200.
Major Resistance Levels – $0.2450, $0.2465 and $0.2500.