Key Highlights
Ripple price failed to hold the $0.5520 and $0.5500 support levels and declined sharply against the US dollar.There was a break below an important bullish trend line with support at $0.5420 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair tested the $0.5000-0.5020 support and it is currently consolidating losses.Ripple price is under bearish pressure against the US Dollar and Bitcoin. XRP/USD could correct higher, but the previous support at $0.5500 may now prevent gains.
Ripple Price Analysis
Yesterday, we discussed about a couple of important supports near the $0.5520 level for Ripple price against the US Dollar. The XRP/USD pair recently faced an increased selling pressure and broke the $0.5520 support. The decline was such that the price even broke the $0.5500 support and the 100 hourly simple moving average. Sellers even managed to clear the last major swing low at $0.5320.
More importantly, there was a break below an important bullish trend line with support at $0.5420 on the hourly chart of the XRP/USD pair. The pair surpassed the $0.5200 level and traded close to the $0.5000 support. A low was formed at $0.5022 and the price is currently consolidating losses. An initial resistance is the 23.6% fib retracement level of the recent drop from the $0.6190 swing high to $0.5022 low. However, it seems like the price may correct towards the $0.5500 level, which is likely to act as a resistance. Moreover, the 50% fib retracement level of the recent drop from the $0.6190 swing high to $0.5022 low is at $0.5600.
Looking at the chart, ripple price remains sell on rallies near the $0.5500 and $0.5600 levels. On the downside, if the price breaks the $0.5000 support, there could be more losses towards $0.4800.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is now placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is well below the 40 level.
Major Support Level – $0.5000
Major Resistance Level – $0.5300
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