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Ripple (XRP) Trading Near Make-or-Break Levels: Can Bulls Save the Day?

Ripple is trading in a broad range above the $0.2100 support against the US Dollar. XRP declined below a key support versus bitcoin and it is now at a risk of a sharp decline vs USD.

  • Ripple is facing hurdles near the $0.2200 and $0.2220 resistance levels against the US dollar.
  • It seems like the price is preparing for a major break either above $0.2250 or below $0.2100.
  • There is a short term rising channel forming with support near $0.2160 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair could decline heavily below the $0.2150 and $0.2100 support levels.

Ripple Price Remains At Risk

Bitcoin price started a strong rise above $9,500 and climbed towards $10,000, but ripple failed to follow through. As a result, XRP to BTC broke a couple of key supports levels, increasing pressure on XRP/USD.

The recent swing high was formed near $0.2225 before the price started a downside correction. There was a break below the $0.2200 support level. The price is now trading below the 23.6% Fib retracement level of the upward move from the $0.2110 low to $0.2225 high.

It seems like there is a short term rising channel forming with support near $0.2160 on the hourly chart of the XRP/USD pair. The channel support is close to the 50% Fib retracement level of the upward move from the $0.2110 low to $0.2225 high.

Ripple Price

Ripple Price

The 100 hourly simple moving average is also acting as a strong support near $0.2160. If ripple fails to stay above the $0.2160 and $0.2150 support levels, it could continue to move down towards the $0.2100 support.

Any further losses might risk a strong decline towards the $0.2000 and $0.1980 support levels in the coming sessions.

Chances of Upside Break

If ripple starts a strong increase from $0.2160 and breaks the $0.2220 resistance, it could continue to rise. The next key resistance on the upside is near the $0.2265 level.

A successful close above the $0.2265 level is needed for a push towards the $0.2350 level. Any further gains could open the doors for a larger rally towards the $0.2400 and $0.2500 levels.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 50 level.

Major Support Levels – $0.2150, $0.2100 and $0.2080.

Major Resistance Levels – $0.2200, $0.2220 and $0.2350.

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Risk disclaimer: 76.4% of retail CFD accounts lose money.

Ripple (XRP) Trading Near Make-or-Break Levels: Can Bulls Save the Day? was last modified: May 8th, 2020 by Aayush Jindal

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