Ripple price after a major decline found support at $1.56 against the US Dollar. XRP/USD is currently recovering, but it is facing a major resistance near $2.10.
Key Talking Points
- Ripple price found a decent support around the $1.55-1.56 levels against the US Dollar.
- There is a crucial descending channel forming with current resistance at $2.10 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
- The pair has to break the channel resistance and move above $2.10 for more gains.
Ripple Price Forecast
During the past few days, we saw a major decline in Ripple price below the $1.80 level against the US Dollar. The XRP/USD pair faced a lot of selling pressure and the price traded close to the $1.50 support area.
A low was formed at $1.5689 from where an upside recovery was initiated. The pair succeeded in moving above the 23.6% Fib retracement level of the last drop from the $2.79 high to $1.56 low.
The current price formation is positive above the $1.56 level, but there is a major hurdle on the upside near $2.05-2.10. There is a crucial descending channel forming with current resistance at $2.10 on the 2-hours chart of the XRP/USD pair.
The channel resistance is also around the 50% Fib retracement level of the last drop from the $2.79 high to $1.56 low. Therefore, a break above the channel resistance and $2.10 is required for more gains. Moreover, the 100 simple moving average (2-hours) is positioned at $2.40 to act as a major resistance.
Should buyers succeed in pushing the price above these two barriers, XRP could easily move towards $3.00 and in the bullish zone.
On the downside, an initial support is around the $1.85 level. Below the mentioned $1.85, the next major support is at $1.56.
Overall, Ripple price is showing a few positive signs above $1.80. It has to move above the $2.10 to gain further momentum. If it fails to move higher, there can be a downside reaction back towards $1.56.
Trade safe traders and do not overtrade!