Ripple price failed to stay above the $0.3700 support area and declined. XRP/USD could accelerate losses if sellers push the price below $0.3550.
- Ripple price declined recently below the $0.3740 and $0.3690 support levels.
- There is a connecting bearish trend line in place with resistance near $0.3680 on the 30-minute chart.
- XRP price must stay above the $0.3570 and $0.3550 support levels in the short term.
Ripple Price Analysis
Recently, there was a decent bounce from the $0.3579 swing low in ripple price above the $0.3700 level. The price climbed above the $0.3800 and $0.3820 resistance levels before sellers appeared near $0.3850.
Click to Enlarge Chart
Looking at the 30-minute chart of XRP/USD, the pair traded as high as $0.3858 and later started a downward move. It declined and broke the $0.3740 and $0.3690 support levels to enter a short term downtrend.
There was even a close below the $0.3690 support and the 25 simple moving average (30-minute). The price tested the key $0.3570 support zone, which acted as a strong barrier for sellers.
Later, the price bounced back and traded above the $0.3620 level. However, the correction was capped by the 23.6% Fib retracement level of the recent drop from the $0.3858 high to $0.3578 low. On the upside, there are many hurdles for buyers near the $0.3690 and $0.3740 levels.
Moreover, there is a connecting bearish trend line in place with resistance near $0.3680 on the same chart. Above the trend line, the 50% Fib retracement level of the recent drop from the $0.3858 high to $0.3578 low is near $0.3720.
Therefore, the $0.3690-0.3740 zone is a crucial resistance zone. A successful close above $0.3740 and the 25 simple moving average (30-minute) is needed for a decent rebound in the near term.
On the flip side, if ripple trades below the $0.3570 and $0.3550 support levels, there could be more declines. The next key support for XRP buyers is near the $0.3400 level, below which the price may test $0.3250.
The market data is provided by TradingView, Bitfinex.