Ripple (XRP) Price Analysis: Recovery Facing Key Hurdles
- Ripple price started a major downside correction after a strong rally above $0.4600 against the US dollar.
- The price tested the $0.4175 support area and it is currently recovering above $0.4300.
- There is a rising channel forming with support near $0.4300 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to face a strong resistance near the $0.4400 and $0.4450 levels in the near term.
Ripple price is currently moving higher against the US Dollar, but consolidating vs bitcoin. XRP could gain momentum once it clears the $0.4400 and $0.4450 resistance levels.
Ripple Price Analysis
Recently, we saw a major rally in ripple price above the $0.4500 resistance against the US Dollar. The XRP/USD pair surpassed the $0.4600 level and traded to a new weekly high near $0.4630. Recently, it started a downside correction and traded sharply below $0.4500 and $0.4400. The price even traded below the $0.4250 level and tested the $0.4175 level.
A swing low was formed at $0.4169 and the price recently started a fresh increase. It settled above the $0.4300 level and the 100 hourly simple moving average. Moreover, there was a break above the 23.6% Fib retracement level of the last slide from the $0.4630 swing high to $0.4170 swing low. However, the price seems to be facing a strong resistance near the $0.4400 level.
The 50% Fib retracement level of the last slide from the $0.4630 swing high to $0.4170 swing low is also near the $0.4400 level. If there is an upside break, the price could test the next key resistance at $0.4450. It coincides with the 61.8% Fib retracement level of the last slide from the $0.4630 swing high to $0.4170 swing low.
On the downside, there are many supports near the $0.4300 level. Moreover, there is a rising channel forming with support near $0.4300 on the hourly chart of the XRP/USD pair. If the pair fails to stay above the channel support, it could decline again below $0.4250. The main support on the downside is near the $0.4200 and $0.4175 levels.
Looking at the chart, ripple price is slowly recovering above the $0.4300 level. However, the bulls need to gain pace above the $0.4400 resistance to push the price into a positive zone. If there are more gains, the next stop for them could be $0.4450 or even $0.4500 in the near term.
Hourly MACD – The MACD for XRP/USD is currently moving slowly in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is back above the 50 level, with a positive angle.
Major Support Levels – $0.4300, $0.4250 and $0.4200.
Major Resistance Levels – $0.4400, $0.4450 and $0.4500.