Ripple failed to extend gains above $ 0.2580 and declined sharply against the US Dollar. XRP price is likely to decline heavily if it breaks the key $ 0.2300 support zone.
- Ripple is now trading well below the $ 0.2400 and $ 0.2380 support levels against the US dollar.
- The price is facing many hurdles and it is now well below the 100 simple moving average (4-hours).
- There was a break below a crucial bullish trend line with support near $ 0.2440 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to decline sharply if there is a close below $ 0.2300 and $ 0.2280.
Ripple Price is Testing Important Support
There was a sharp decline after there was a close below the $ 0.2440 support and 100 simple moving average (4-hours). More importantly, there was a break below a crucial bullish trend line with support near $ 0.2440 on the 4-hours chart of the XRP/USD pair.
The pair even traded below the $ 0.2320 support and traded as low as $ 0.2293. It is currently consolidating losses above a significant support zone near $ 0.2290-$ 0.2300.
Ripple (XRP) price trades below $ 0.2350. Source: TradingView.com
On the upside, an initial resistance is near the $ 0.2360 level or the 23.6% Fib retracement level of the recent decline from the $ 0.2590 swing high to $ 0.2293 low. The main resistance is near the $ 0.2440 level (the recent breakdown zone) and the 100 simple moving average (4-hours).
The 50% Fib retracement level of the recent decline from the $ 0.2590 swing high to $ 0.2293 low is also near the $ 0.2440 level. A successful close above the $ 0.2440 resistance and the 100 SMA is must for a decent upward move in the near term.
More Losses in XRP?
If ripple fails to recover above the $ 0.2400 and $ 0.2440 resistance levels, there is a risk of more losses. The main breakdown support is forming near the $ 0.2290-$ 0.2300 zone.
A downside break and close below the $ 0.2290-$ 0.2300 zone could start a sharp decline. The next main support is near the $ 0.2200 level, below which the price could accelerate lower towards $ 0.2120.
4-Hours MACD – The MACD for XRP/USD is slowly losing pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is well below the 50 level.
Major Support Levels – $ 0.2300, $ 0.2290 and $ 0.2200.
Major Resistance Levels – $ 0.2365, $ 0.2400 and $ 0.2440.