- Ripple price is still struggling to gain pace above the $0.4800 and $0.5000 resistance levels against the US dollar.
- The price is now well below $0.5000 and the 55 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $0.4560 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
- The pair could either rally above $0.4600 or it might dive towards the $0.3950 support.
Ripple price is consolidating well below the $0.5000 resistance against the US Dollar. XRP price must settle above $0.5000 to start a strong uptrend.
Ripple Price Analysis
After struggling to clear the $0.4900 resistance, ripple price corrected lower against the US Dollar. The XRP/USD pair traded below the $0.4800 and $0.4720 support levels.
There was also a break below the $0.4550 support zone and a close below the 55 simple moving average (4-hours). A low is formed near $0.4238 and the price is now consolidating losses. It is well below $0.5000 and the 55 simple moving average (4-hours).
There was a break above the 23.6% Fib retracement level of the downward move from the $0.4901 high to $0.4238 low. However, the price is facing a strong resistance near $0.4550 and $0.4580.
There is also a key contracting triangle forming with resistance near $0.4560 on the 4-hours chart of the XRP/USD pair. The triangle resistance is close to the 50% Fib retracement level of the downward move from the $0.4901 high to $0.4238 low.
The 55 simple moving average (4-hours) is also near $0.4600. Therefore, the bulls need to clear the $0.4560 and $0.4600 resistance levels for a push towards the main $0.5000 resistance. Finally, a close above $0.5000 is needed for a sustained upward move.
If there is a downside break below the $0.4380 support and triangle trend line, there is a risk of a sharp decline in the coming sessions. The next major support is near the $0.4000 level.
Looking at the chart, ripple price is clearly trading well below the $0.5000 zone and the 55 simple moving average (4-hours). Overall, the price could either rally above $0.4600 or it might dive towards the $0.3950 support.
Technical indicators
4 hours MACD – The MACD for XRP/USD is struggling to gain momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for XRP/USD is well below the 50 level.
Key Support Levels – $0.4380, $0.4200 and $0.4000.
Key Resistance Levels – $0.4600 and $0.5000.