Ripple started a downside correction below $ 0.6500 against the US Dollar. XRP price is likely preparing for the next major move, similar to bitcoin and ETH.
- Ripple corrected lower, but it remained stable above $ 0.6000 against the US dollar.
- The price is struggling to clear $ 0.6500, but it is well above the 100 simple moving average (4-hours).
- There is a major contracting triangle forming with resistance at $ 0.6340 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to surge above $ 0.6500 and $ 0.6800 as long as it is above the $ 0.5500 support.
Ripple’s XRP Price is Holding Key Supports
XRP is now struggling to clear the $ 0.6350 and $ 0.6500 resistance levels. The last swing high was formed near $ 0.6896 before the price declined below $ 0.6000. It tested the 50% Fib retracement level of the upward move from the $ 0.4566 low to $ 0.6896 high.
The price remained well bid above $ 0.5750 and it recovered higher. It is now trading well above the $ 0.6000 support and the 100 simple moving average (4-hours).
Source: XRPUSD on TradingView.com
More importantly, there is a major contracting triangle forming with resistance at $ 0.6340 on the 4-hours chart of the XRP/USD pair. The triangle support is close to the 61.8% Fib retracement level of the upward move from the $ 0.4566 low to $ 0.6896 high.
If there is an upside break above the triangle resistance, the price could attempt to clear the $ 0.6500 resistance level. A successful close above the $ 0.6500 resistance could lift the price towards the $ 0.7000 resistance level in the next 3-4 days.
Downsides Break in XRP?
If ripple fails to surpass the $ 0.6340 and $ 0.6500 resistance levels, it could slowly move down. An initial support on the downside is near the $ 0.6000 level.
The first major support is now forming near the $ 0.5750 level. The main support is near the $ 0.5500 level, below which the price may even struggle to stay above the 100 simple moving average (4-hours).
4-Hours MACD – The MACD for XRP/USD is losing pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently just below the 50 level.
Major Support Levels – $ 0.6000, $ 0.5750 and $ 0.5500.
Major Resistance Levels – $ 0.6340, $ 0.6500 and $ 0.7000.