Ripple (XRP) Is Plunging and it’s Vulnerable For A Bigger Decline
Ripple failed to stay above the $0.1900 support and declined sharply against the US Dollar. XRP price remains at a risk of more losses below the $0.1800 support area
Ripple price is down more than 2% and it settled below the $0.1880 level against the US dollar.
A new weekly low is formed near $0.1812 and the price is now well below the 100 hourly simple moving average.
There was a break below a major ascending channel with support near $0.1900 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair could correct higher in the short term, but upsides are likely to remain capped near $0.1880.
Ripple Price Gaining Bearish Momentum
After breaking the $0.1920 resistance, ripple made an attempt to surpass the $0.1980 resistance area, but it failed. XRP price traded as high as $0.1966 and recently started a sharp decline.
It broke the key $0.1900 support level to move into a bearish zone. The bears were able to push the price below the $0.1880 pivot and the 100 hourly simple moving average.
More importantly, there was a break below a major ascending channel with support near $0.1900 on the hourly chart of the XRP/USD pair. The pair even broke the last swing low near $0.1820 and traded to a new weekly low at $0.1812.
Ripple is currently consolidating losses above the $0.1812 low. An initial resistance is near the $0.1850 level. It is close to the 23.6% Fib retracement level of the recent decline from the $0.1966 high to $0.1812 low.
The first major resistance is near the $0.1880 level, followed by $0.1900. A successful close above the $0.1900 level might lead the price towards the 100 hourly simple moving average. Any further gains might increase the chances of an upside break above the $0.2000 resistance.
On the downside, an initial support is near the $0.1810 and $0.1800 levels. If ripple fails to recover above the $0.1850 and $0.1880 resistance levels, it could continue to move down.
A clear break below the $0.1800 support area may perhaps lead the price towards the $0.1720 and $0.1680 support levels 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.
Major Support Levels – $0.1810, $0.1800 and $0.1720.
Major Resistance Levels – $0.1850, $0.1880 and $0.1900.
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