Ripple declined sharply below the $0.2000 support zone against the US Dollar. XRP price is currently correcting higher, but upsides are likely to remain capped near $0.1950 or the 100 SMA (H4).
Ripple Price Turns Bearish?
After many attempts to break the $0.2050 resistance, ripple started a major decline. XRP price broke many important supports near the $0.2000 level to move into a bearish zone.
The decline was such that the price weakened more than 5% and settled well below the 100 simple moving average (4-hours). More importantly, there was a break below a major declining channel with support at $0.1970 on the 4-hours chart of the XRP/USD pair.
A new weekly low is formed near the $0.1831 level and the price is currently correcting higher. It broke the $0.1850 and $0.1860 levels. Ripple is now trading above the 23.6% Fib retracement level of the recent decline from the $0.2056 high to $0.1831 low.
On the upside, an initial resistance is near the $0.1920 area (the recent breakdown zone). The next key resistance is near the $0.1945 since it is close to the 50% Fib retracement level of the recent decline from the $0.2056 high to $0.1831 low.
The main resistance is now near the $0.2000 level and the 100 SMA. A successful close above the $0.2000 level is needed to move into a positive zone.
More Losses in XRP?
Once the current correction wave is complete, ripple price is likely to resume its decline below the $0.1850 level. An initial support is near the $0.1830 swing low.
If there is a downside break below the recent low, the price is likely to accelerate lower towards the $0.1800 and $0.1780 support levels in the near term.
4-Hours MACD – The MACD for XRP/USD is now gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently in the oversold zone below 30.
Major Support Levels – $0.1850, $0.1830 and $0.1800.
Major Resistance Levels – $0.1920, $0.1945 and $0.2000.
Risk disclaimer: 76.4% of retail CFD accounts lose money.
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