Ripple (XRP) Price Breaks Down: Can Bulls Protect $0.40?
- Ripple price failed to hold the key $0.4400 support area and declined recently against the US dollar.
- The price declined below the $0.4200 support area and even spiked below $0.4000.
- There was a break below a major ascending channel with support at $0.4380 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is currently near $0.4120, but there is a risk of more losses in the near term.
Ripple price failed to continue higher and declined sharply against the US Dollar and bitcoin. XRP is currently under pressure and it seems like the bulls may struggle to hold $0.4000.
Ripple Price Analysis
In the past few days, there was a steady rise in ripple price above the $0.4200 and $0.4380 resistance against the US Dollar. The XRP/USD pair even broke the $0.4500 resistance and settled above 100 hourly simple moving average. Finally, there was a push above the $0.4610 level. However, the price failed to stay above the $0.4600 level and there was a major bearish reaction. The price declined heavily and broke the key $0.4500 and $0.4440 support levels.
During the decline, there was a break below a major ascending channel with support at $0.4380 on the hourly chart of the XRP/USD pair. The pair even broke the $0.4200 support area and the 100 hourly simple moving average. Finally, there was a spike below the $0.4000 level and the price traded as low as $0.3964. At the moment, the price is correcting above $0.4100 and the 23.6% Fib retracement level of the recent decline from the $0.4646 high to $0.3964 low. On the upside, there are many hurdles for the bulls near the $0.4300 level. The broken trend line support near $0.4320 and the 100 hourly SMA could prevent upsides.
Moreover, the 50% Fib retracement level of the recent decline from the $0.4646 high to $0.3964 low is also near the $0.4305 level to act as a resistance. Therefore, if there is an upside correction, the price could struggle near the $0.4300 level. A successful close above $0.4320 and the 100 hourly SMA might start a fresh increase. If not, there is a risk of more losses below $0.4100 and $0.4000.
Looking at the chart, ripple price clearly moved into a short term bearish zone below $0.4300. If the bulls continue to struggle near $0.4300, there might be another push below the $0.4000 level.
Hourly MACD – The MACD for XRP/USD is gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level, with a negative angle.
Major Support Levels – $0.4100, $0.4000 and $0.3920.
Major Resistance Levels – $0.4250, $0.4300 and $0.4320.