Ripple Price Analysis: XRP/USD Target Additional Weakness
Ripple price started a downside correction from the $0.3150 high. XRP to USD might decline towards the $0.2810 support area before it could start a fresh upward move.
Key Takeaways: XRP/USD
- Ripple price is struggling to hold the key $0.2900 support area against the US Dollar.
- XRP/USD is facing a major resistance near $0.3000 and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
- Bitcoin price is also facing an increase in bearish pressure below $9,000, similar to Ethereum below $185.
Ripple Price Analysis
This past weekend, we saw a nice rally in bitcoin price above $9,000 and $10,000. Similarly, there were strong gains in ripple above the $0.2720 resistance level. XRP/USD rallied above the $0.2800 and $0.2920 resistance levels.
Looking at the 2-hours chart, ripple price even traded above the $0.3000 level and settled well above the 50 simple moving average (2-hours, purple). A new monthly high was formed at $0.31500 and recently, the price started a sharp downside correction.
There was a break below the $0.3000 support and the 23.6% Fib retracement level of the upward wave from $0.2474 to $0.3150. Moreover, the price broke the $0.2920 support level and the 50 simple moving average (2-hours, purple).
At the moment, the price is finding support near the $0.2900 area. If there is a downside break, the price could decline towards the $0.2810 support area. It coincides with the 50% % Fib retracement level of the upward wave from $0.2474 to $0.3150.
Conversely, there are many hurdles for ripple price near the $0.2980 and $0.3000 levels. The main resistance is near the $0.3000 level and a connecting bearish trend line on the same chart. Therefore, the price might struggle to gain momentum above the $0.2980 and $0.3000 resistance levels.
If there is an upside break above the $0.3000 resistance and a close above the 50 SMA, the price could start a fresh ascend towards the $0.3150 and $0.3200 levels. If not, there is a risk of an extended correction towards the $0.2810 level in the near term.