- Ripple price declined heavily from well above the $1.800 level against the US dollar.
- The price is now trading below the $1.20 support and the 55 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $1.155 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair could start a major increase if there is a clear break above $1.155 and $1.160.
Ripple price is attempting a recovery from $0.885 against the US Dollar. XRP price is likely to accelerate higher if there is a close above $1.200.
Ripple Price Analysis
After a sharp increase, ripple price failed to clear the $2.00 resistance zone against the US Dollar. The XRP/USD pair started a fresh decline and it traded below the $1.65 and $1.50 support levels.
The price even broke the $1.250 support zone and the 55 simple moving average (4-hours). There was even a spike below the $1.00 support and the price traded as low as $0.8833. It is now recovering higher and trading above the $1.00 resistance zone.
There was a break above the 23.6% Fib retracement level of the recent decline from the $1.4247 swing high to $0.8833 low. The price is now facing resistance near the $1.150 zone.
There is also a major bearish trend line forming with resistance near $1.155 on the 4-hours chart of the XRP/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $1.4247 swing high to $0.8833 low.
A clear upside break above the trend line resistance could start a decent increase towards the $1.20 level. The next major resistance is near the $1.30 level and the 55 simple moving average (4-hours).
A successful close above the trend line resistance and $1.30 could set the stage for a fresh rally towards the $1.50 and $1.60 levels. On the downside, the price could find a strong support near $1.00, below which the price might slide towards the $0.85 level.
Looking at the chart, ripple price is clearly facing hurdles near the 55 simple moving average (4-hours) and $1.150. Overall, the price could start a major increase if there is a clear break above $1.155 and $1.160.
Technical indicators
4 hours MACD – The MACD for XRP/USD is slowly gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is approaching the 50 level.
Key Support Levels – $1.050, $1.000 and $0.880.
Key Resistance Levels – $1.150 and $1.300.
