- Ripple price is currently consolidating above the $0.3400 support with bullish moves against the US dollar.
- There is a major contracting triangle formed with resistance at $0.3820 on the 4-hours chart of the XRP/USD pair (data source from Poloniex).
- The pair is likely to break the triangle resistance and $0.3950 for more gains in the near term.
Ripple price is trading with a bullish bias above $0.3400 against the US Dollar. XRP could gain bullish momentum above $0.4000 once there is a break above $0.3820.
Ripple Price Analysis
After a significant drop, ripple price found support near the $0.3400 level against the US Dollar. The XRP/USD pair traded as low as $0.3396 and later started a decent recovery. It moved above the $0.3500 and $0.3600 resistance levels. Besides, there was a break above the $0.3800 level and the 55 simple moving average (4-hours). The price even broke the 23.6% Fib retracement level of the downside move from the $0.4664 high to $0.33950 low.
However, the upside move was capped by the $0.4000 resistance area. Buyers even failed to test the 50% Fib retracement level of the downside move from the $0.4664 high to $0.33950 low. Later, the price declined a few points below $0.3800 and started trading in a range. At the outset, there is a major contracting triangle formed with resistance at $0.3820 on the 4-hours chart of the XRP/USD pair. The pair needs to break the $0.3820 resistance to set the pace for more gains. The next resistance is at $0.3950, above which the price could clear the $0.4000 barrier. Finally, above $0.4000, the price may test $0.4180 and the 61.8% Fib retracement level of the downside move.
Looking at the chart, ripple price is clearly preparing for the next key break either above $0.3820 or below $0.3620. If there is a downside break below $0.3620 and $0.3600, the price could drop to the $0.3400 support.
4-hours MACD – The MACD for XRP/USD is slightly placed in the bearish zone, with a flat structure.
4-hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently near the 53 level.
Key Support Level – $0.3600
Key Resistance Level – $0.3820
Check out the original article here.
Author: Aayush Jindal