- Ripple price failed to stay above $0.5000 and declined sharply against the US dollar.
- The price is now trading well below the $0.450 zone and the 55 simple moving average (4-hours).
- There is a key declining channel forming with resistance near $0.4320 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair is likely to continue lower towards the $0.3500 support zone in the near term.
Ripple price is started a fresh decline below $0.5000 and $0.4500 against the US Dollar. XRP price is correcting losses, but it is likely to face sellers near $0.4400.
Ripple Price Analysis
After a spike above $0.6000, ripple price struggled to clear the key $0.6500 resistance against the US Dollar. The XRP/USD pair topped near the $0.6515 level and recently started a fresh decline.
There was a break below the $0.5000 support level and the 55 simple moving average (4-hours). The bears gained pace below the $0.4500 and $0.4000 support levels. It traded as low as $0.3646 before the price started an upside correction.
There was a break above the $0.3800 and $0.4000 levels. However, the price is facing resistance near $0.4320. The 23.6% Fib retracement level of the recent decline from the $0.6513 high to $0.3646 low.
Moreover, there is a key declining channel forming with resistance near $0.4320 on the 4-hours chart of the XRP/USD pair. If there is an upside break above the channel resistance, the price could correct higher towards the $0.4800 resistance and the 55 simple moving average (4-hours).
The next major resistance is near the $0.5050 level. It is close to the 50% Fib retracement level of the recent decline from the $0.6513 high to $0.3646 low.
Any more upsides might open the doors for a steady increase towards the $0.5800 and $0.6000 levels. Conversely, there is a risk of a fresh decline below the $0.4120 and $0.4050 levels. The first major support is near the $0.4000 level, below which the price could dive towards the $0.3500 level.
Looking at the chart, ripple price is clearly trading well below the $0.5000 zone and the 55 simple moving average (4-hours). Overall, the price is likely to continue lower towards the $0.3500 support zone in the near term.
Technical indicators
4 hours MACD – The MACD for XRP/USD is struggling to gain momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is still below the 50 level.
Key Support Levels – $0.4120, $0.4000 and $0.3500.
Key Resistance Levels – $0.4320 and $0.4800.
