Ripple started a sharp decline after failing near $ 0.3700 against the US dollar. XRP price is currently testing key support near $ 0.2600 and 100 SMA (H4).
- The ripple is down over 20% and has broken some key supports at $ 0.3000 against the US dollar.
- The price tested the support zone of $ 0.2600 and the simple moving average of 100 (4 hours).
- An important bearish trendline is forming on the 4-hour chart of the XRP / USD pair (data source from Kraken) with resistance near USD 0.3320.
- The pair needs to stay above $ 0.2600 and $ 0.2500 to start a fresh move in the short term.
Ripple’s XRP price is down 20%
In the past few days, Ripple’s XRP price has made two attempts to gain strength above $ 0.3650 and $ 0.3700. The bulls were unable to maintain control causing a sharp drop below the $ 0.3200 support.
Bitcoin and Ethereum also saw a sharp decline today, accelerating the decline in XRP below the $ 0.3000 support level. The price fell over 20%, breaking the 23.6% fib retracement level of the bullish wave from the low of $ 0.1759 to the high of $ 0.3700.
An important bearish trendline is also forming on the 4-hour chart of the XRP / USD pair with resistance near USD 0.3320. The price is now testing the support zone of $ 0.2600 and the simple moving average of 100 (4 hours).
The 50% fib retracement level of the upside wave from the low of $ 0.1759 to the high of $ 0.3700 also acts as a strong support.
Unless the price stays above the $ 0.2600 and $ 0.2500 support levels, there is a risk of a sharp decline. In the aforementioned case, the price could continue to decline towards the USD 0.2200 and USD 0.2120 support levels.
New recovery in XRP?
If the ripple remains stable above the $ 0.2500 level, there is a chance it may rise again. Initial resistance to the upside is near the $ 0.2920 level.
The first major resistance for the bulls is near the $ 0.3000 level. The main resistance is now at $ 0.3300 and the bearish trendline. A close above the $ 0.3300 resistance zone could push the price towards the $ 0.3700 and $ 0.3800 levels in the short term.
4 Hour MACD – The MACD for XRP / USD is gaining momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP / USD is now well below the 50 level.
Key support levels – $ 0.2600, $ 0.2500, and $ 0.2220.
Main Resistance Levels – $ 0.2920, $ 0.3120, and $ 0.3300.