Thursday, January 7, 2021

Charted: Ripple (XRP) Recovery Faces Hurdle, Why Dips Could Be Limited



Ripple started a strong recovery wave above the $0.2500 and $0.3000 levels against the US Dollar. XRP price is currently facing a strong resistance, but dips might be limited below $0.2500.


  • Ripple started a fresh upward move after forming a support base near $0.2150 against the US dollar.

  • The price is now trading well above $0.2500 and the 100 simple moving average (4-hours).

  • There is a key bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair (data source from Kraken).

  • The pair spiked to test the trend line and it is currently retreating towards $0.2750.

Ripple’s XRP Price is Facing Hurdles


After a sharp decline, ripple’s XRP price started a consolidation phase above the $0.2000 level. A support base was formed near the $0.2150 level before the price started a strong increase.


The price broke the $0.2450 and $0.2500 resistance levels to start a strong increase. There was a close above the $0.2500 level and the 100 simple moving average (4-hours). The bulls gained strength and they were able to push the price above the $0.3000 level.


However, upsides were limited and there was only a spike above $0.3200. There is also a key bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair.


Ripple’s XRP Price


Source: XRPUSD on TradingView.com

A swing high is formed near $0.3700 on Kraken and the price is currently retreating lower. There was a break below the $0.3120 support level. It is currently testing the 50% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high.


If there are more losses, the price could test the $0.2750 support and the 100 simple moving average (4-hours). The 61.8% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high is also near $0.2750. The next major support on the downside is forming near the $0.2500 level.


Upsides Capped in XRP?


If ripple starts another recovery wave, it could face a lot of hurdles, starting with $0.3120. The first major resistance for the bulls is near the $0.3250 level.


The main resistance is now forming near the $0.3500 level and the bearish trend line. A close above the $0.3500 zone could lead the price towards the $0.4000 level in the near term.


Technical Indicators


4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bullish zone.


4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 60 level.


Major Support Levels – $0.2800, $0.2750 and $0.2550.


Major Resistance Levels – $0.3150, $0.3250 and $0.3500.




Source newsbtc.com

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