Ripple is down more than 10% and it tagged the $0.2000 support against the US Dollar. XRP price is currently correcting higher, but upsides are likely to remain capped near $0.2150.
- Ripple price is showing a lot of bearish signs below the $0.2200 and $0.2150 levels against the US dollar.
- The price tested the $0.2000 support area and it remains at a risk of more losses.
- There is a major contracting triangle forming with support near $0.2038 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price could correct higher, but it is likely to face a strong selling interest near $0.2150.
Ripple Price Eyeing Fresh Increase
Ripple started a major decline from well above the $0.2300 support. XRP price followed a bearish path similar to bitcoin and Ethereum to settle well below the 100 hourly simple moving average.
The recent decline was such that the bears took the price below the $0.2150 support area. It tested the $0.2000 support level and a new monthly low is formed near $0.1998.
Ripple is currently correcting higher and trading above the $0.2040 level. Besides, it is testing the 23.6% Fib retracement level of the recent dive from the $0.2449 high to $0.1998 low.
On the upside, there are many hurdles forming near the $0.2100 and $0.2120 levels. There is also a major contracting triangle forming with support near $0.2038 on the hourly of the XRP/USD pair.
If the pair breaks the triangle support and $0.2030, there are chances of more losses in the near term. The main support is near the $0.2000 area, below which the bears are likely to aim a test of the $0.1880 support area.
Recovery Could Be Capped
If ripple starts an upside correction above the $0.2100 resistance, it could test the key $0.2150 resistance area. There is also a crucial bearish trend line forming with resistance near $0.2160 on the same chart.
Above the trend line resistance, the 50% Fib retracement level of the recent dive from the $0.2449 high to $0.1998 low is near the $0.2220 area. Therefore, a decent recovery in ripple requires a solid break above the $0.2150 resistance and a follow through above the $0.2200 level.
If not, the bears are likely to aim more losses below the $0.2020 and $0.2000 support levels in the coming sessions.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is slowly recovering and it could move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting higher towards the 40 level.
Major Support Levels – $0.2040, $0.2020 and $0.2000.
Major Resistance Levels – $0.2100, $0.2120 and $0.2150.