Ripple Price Analysis: XRP Testing Key Uptrend Support, Bounce Ahead?

in analysis •  6 years ago 

Ripple price rallied above the $0.4250 and $0.4400 resistance levels recently against the US dollar.
There is a key bullish trend line formed with support at $0.3750 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair must stay above the $0.3750 support and the 100 hourly simple moving average to bounce back.
Ripple price made a nice upward move against the US Dollar and Bitcoin. XRP/USD may bounce back if it stays above the $0.3750 or $0.3600 support.

Ripple Price Analysis
Recently, there was a solid upward move above the $0.3800 resistance in ripple price against the US Dollar. The XRP/USD pair gained momentum above $0.3905 and $0.4000 to enter a bullish zone. Later, it rallied above the $0.4250 and $0.4400 resistance levels. A new weekly high was formed at $0.4522 and later the price corrected lower sharply. It broke the $0.4270 and $0.4050 support levels.

The price also cleared the 50% Fib retracement level of the recent wave from the $0.3454 low to $0.4522 high. The decline was such that the price even cleared the $0.3820-0.3800 support. Buyers are currently protecting the $0.3750 support and the 100 hourly simple moving average. Moreover, there is a key bullish trend line formed with support at $0.3750 on the hourly chart of the XRP/USD pair. If there is a downside break below the $0.3750 support, there could be more declines towards $0.3454. An intermediate support is the 76.4% Fib retracement level of the recent wave from the $0.3454 low to $0.4522 high.

Ripple Price Analysis XRP Chart

Looking at the chart, ripple price is clearly trading near a crucial support at $0.3750 and the 100 hourly simple moving average. Therefore, there are chances of a fresh upward move towards $0.4000 in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for XRP/USD moved back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.

Major Support Level – $0.3750

Major Resistance Level – $0.4000

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