Ripple extended its rally above the USD 1,200 resistance zone before correcting lower against the US dollar. XRP price is now consolidating gains and is likely to climb back above $ 1,400.
- The ripple rose towards $ 1.50 before correcting lower against the US dollar.
- The price is now trading well above $ 1.1500 and the simple moving average of 100 (4 hours).
- A major contraction triangle is forming on the 4-hour chart of the XRP / USD pair (data source from Kraken) with support near USD 1.3100.
- The pair is likely to start a new rally when it hits the $ 1,400 resistance zone.
Ripple’s XRP price continues to be well supported
In the past few days, Ripple’s XRP has seen a sharp surge above $ 1.0000 unlike Bitcoin and Ethereum. XRP has cleared a lot of hurdles near $ 1,200 to get further into a positive zone.
The price even surged above $ 1,400 before the bears appeared near $ 1,485. A high was formed near $ 1.481 and there has recently been a downward correction. The bears were able to push the price below the USD 1,420 and USD 1,400 support levels.
There was a break below the Fib retracement level of 23.6% in the move up from the low of $ 0.8598 to the high of $ 1.481. However, the price is still trading well above $ 1,250 and the simple moving average of 100 (4 hours).
Source: XRPUSD on TradingView.com
A major contraction triangle is also forming on the 4-hour chart of the XRP / USD pair with support near USD 1.310. The pair is well above the 50% fib retracement level of the move up from the low of $ 0.8598 to $ 1.481.
On the upside, the $ 1.3800 level is an immediate resistance. The next major resistance is near the $ 1,400 level. A successful close above the $ 1,400 level should trigger a new rally towards $ 1,500 and $ 1,650.
Dips Limited in XRP?
If the ripple doesn’t remove the $ 1.4000 or $ 1.450 resistance, it can be corrected below. Initial support to the downside is near the USD 1.3100 level and the trend line.
The next big support is near the $ 1.2500 level. Further losses could require a decline towards the USD 1.120 support zone in the upcoming sessions.
4 Hour MACD – The MACD for XRP / USD is slowly losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP / USD is still well above the 50 level.
Major support levels – $ 1.3100, $ 1.2500, and $ 1.1200.
Main Resistance Levels – $ 1,400, $ 1,450, and $ 1,500.