Analysis

Charted: Ripple (XRP) Smashes $0.30, Why Pullbacks Could Be Limited

Ripple surged over 12% and it even broke the $ 0.3000 resistance against the US Dollar. XRP price is currently trading near $ 0.3010 and dips might be limited in the near term.

  • Ripple started a strong rally after it settled above the $ 0.2650 resistance against the US dollar.
  • The price even cleared the $ 0.3000 resistance and settled well above the 100 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $ 0.2700 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair could start a downside correction if it fails to clear the $ 0.3040 resistance zone.

Ripple’s XRP Price Rallies 12%

In the past 2-3 sessions, there was a sharp increase in ripple’s XRP price above the $ 0.2650 resistance zone. The price gained pace above $ 0.2800 and settled well above the 100 simple moving average (4-hours).

The upward move gained pace above the $ 0.2850 and $ 0.2920 levels. Finally, the price spiked above the $ 0.3000 resistance and traded to a new multi-week high at $ 0.3030. The price is now consolidating gains above the $ 0.2950 and $ 0.2960 levels.

An initial support is near the $ 0.2940 level. It is close to the 23.6% Fib retracement level of the recent rally from the $ 0.2647 low to $ 0.3030 high. The next major support is near the $ 0.2850 level.

Ripple’s XRP Price

Source: XRPUSD on TradingView.com

The 50% Fib retracement level of the recent rally from the $ 0.2647 low to $ 0.3030 high is also near the $ 0.2835 level to provide support. More importantly, there is a major bullish trend line forming with support near $ 0.2700 on the 4-hours chart of the XRP/USD pair.

On the upside, the price is clearly facing a huge resistance near $ 0.3030 and $ 0.3040. If there is a successful break above the $ 0.3040 resistance zone, the price might surge towards the $ 0.3120 and $ 0.3150 levels in the near term.

Dips Limited in XRP?

If ripple fails to clear the $ 0.3030 and $ 0.3040 support levels, there could be a downside correction. The first key support is near the $ 0.2850 level.

The next major support is near the $ 0.2770 level (a multi-touch zone). Overall, dips towards the $ 0.2850 and $ 0.2770 levels are likely to find a strong buying interest in the near term.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 65 level.

Major Support Levels – $ 0.2940, $ 0.2850 and $ 0.2770.

Major Resistance Levels – $ 0.3000, $ 0.3040 and $ 0.3050.

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