Ripple is down more than 50% in a day and broke the $0.1500 support against the US Dollar. XRP price tested the $0.1200 support area and it is currently showing a few recovery signs.
- Ripple price is down more than $0.1000 and it recently tested the $0.1200 support against the US dollar.
- The price is currently correcting higher from the $0.1174 swing low.
- There is a major bearish trend line forming with resistance near $0.1900 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The price might resume its decline if it fails to recover above the $0.1650 and $0.1700 resistance levels.
Ripple Price Testing Key Support
In the past three sessions, ripple saw a monstrous decline from well above $0.2000. XRP price declined more than 50% and broke many key supports near $0.1800 and $0.1650 to enter a medium term downtrend.
The decline was such that the price even broke the $0.1500 support and settled well below the 100 simple moving average (4-hours). Finally, it tested the key $0.1200 support area and a new multi-month low was formed near the $0.1174 level.
Ripple is currently correcting higher and trading above the $0.1400 level. It is trading above the 23.6% Fib retracement level of the recent decline from the $0.2160 high to $0.1174 low.
On the upside, an initial resistance is near the $0.1650 level. The 50% Fib retracement level of the recent decline from the $0.2160 high to $0.1174 low is also near the $0.1667 level to act as a major hurdle for the bulls.
More importantly, there is a major bearish trend line forming with resistance near $0.1900 on the 4-hours chart of the XRP/USD pair. Therefore, the pair must recover above the $0.1650 and $0.1900 resistance levels to move back into a positive zone.
What if Recovery Fails?
Clearly, the $0.1200 support is very important. Ripple is currently showing a few positive signs above $0.1400. However, the $0.1650 resistance zone could be a key barrier for the bulls.
If they fail to overcome the $0.1650 hurdle, the price may perhaps resume its decline. The first support on the downside is near the $0.1320 level. The main support is near the $0.1200 level, below which the price could test the $0.1000 level.
4-Hours MACD – The MACD for XRP/USD is about to move back into the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting high towards the 40 level.
Major Support Levels – $0.1320, $0.1200 and $0.1100.
Major Resistance Levels – $0.1650, $0.1800 and $0.1900.