Analysis

Charted: Ripple (XRP) Signaling Next Crucial Break, $0.62 A Key Barrier

Ripple is trading in a contracting range above $ 0.6000 against the US Dollar. XRP price is setting up for a major break either above $ 0.6200 or below $ 0.5800.

  • Ripple is showing a few positive signs above $ 0.6000 and $ 0.5800 against the US dollar.
  • The price is stuck above $ 0.6000 and the 100 simple moving average (4-hours).
  • There is a crucial contracting triangle forming with resistance at $ 0.6130 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair could start a strong upward move if there is a clear break above $ 0.6150 and $ 0.6200.

Ripple’s XRP Price is Facing Major Resistance

After testing the $ 0.5500 support area, ripple’s XRP price started a steady recovery. There was a break above the $ 0.5750 and $ 0.5800 resistance levels to move into a short-term bullish zone.

The price traded above the 23.6% Fib retracement level of the downward move from the $ 0.6847 high to $ 0.5446 low. It is now trading above the $ 0.6000 level and the 100 simple moving average (4-hours). On the upside, the price is facing a major resistance near $ 0.6150 and $ 0.6200.

Ripple’s XRP Price

There is also a crucial contracting triangle forming with resistance at $ 0.6130 on the 4-hours chart of the XRP/USD pair. The contracting triangle is close to the 50% Fib retracement level of the downward move from the $ 0.6847 high to $ 0.5446 low.

A close above the $ 0.6150 and $ 0.6200 resistance levels could open the doors for a sharp increase. A successful close above the $ 0.6200 resistance could lift the price towards the $ 0.6500 resistance level. Any more upsides might lead the price towards the $ 0.6800 zone. An intermediate resistance is seen near the $ 0.6720.

Downside Break in XRP?

If ripple fails to surpass the $ 0.6150 and $ 0.6200 resistance levels, it could decline heavily. An initial support on the downside is near the $ 0.6000 level.

The first major support is now forming near the $ 0.5800 level. A break below the triangle support zone and the 100 simple moving average (4-hours) might call for a sharp decline. The next major support is seen near the $ 0.5500 level.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is losing momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently flat near the 50 level.

Major Support Levels – $ 0.6000, $ 0.5800 and $ 0.5750.

Major Resistance Levels – $ 0.6150, $ 0.6200 and $ 0.6500.

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Technical analysis – NewsBTC

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