Charted: Ripple (XRP) Recovery Faces Hurdle, Why Dips Could Be Limited
Ripple started a strong recovery wave above the $0.2500 and $0.3000 levels against the US Dollar. XRP price is currently facing a strong resistance, but dips might be limited below $0.2500.
Ripple started a fresh upward move after forming a support base near $0.2150 against the US dollar.
The price is now trading well above $0.2500 and the 100 simple moving average (4-hours).
There is a key bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
The pair spiked to test the trend line and it is currently retreating towards $0.2750.
Ripple’s XRP Price is Facing Hurdles
After a sharp decline, ripple’s XRP price started a consolidation phase above the $0.2000 level. A support base was formed near the $0.2150 level before the price started a strong increase.
The price broke the $0.2450 and $0.2500 resistance levels to start a strong increase. There was a close above the $0.2500 level and the 100 simple moving average (4-hours). The bulls gained strength and they were able to push the price above the $0.3000 level.
However, upsides were limited and there was only a spike above $0.3200. There is also a key bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair.
A swing high is formed near $0.3700 on Kraken and the price is currently retreating lower. There was a break below the $0.3120 support level. It is currently testing the 50% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high.
If there are more losses, the price could test the $0.2750 support and the 100 simple moving average (4-hours). The 61.8% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high is also near $0.2750. The next major support on the downside is forming near the $0.2500 level.
Upsides Capped in XRP?
If ripple starts another recovery wave, it could face a lot of hurdles, starting with $0.3120. The first major resistance for the bulls is near the $0.3250 level.
The main resistance is now forming near the $0.3500 level and the bearish trend line. A close above the $0.3500 zone could lead the price towards the $0.4000 level in the near term.
4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 60 level.
Major Support Levels – $0.2800, $0.2750 and $0.2550.
Major Resistance Levels – $0.3150, $0.3250 and $0.3500.