Ripple price declined sharply during the past three sessions and moved below $0.6300 against the US Dollar. XRP/USD may recover a few points, but it could face resistance near $0.7100.
Key Talking Points
Ripple price was under selling pressure and declined below a crucial support at $0.7350 against the US Dollar.
There was a break below a declining channel with support at $0.7050 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
The pair formed a low near the $0.6265 level and it is currently correcting higher.
Ripple Price Forecast
The past three sessions were mostly bearish and Ripple price tumbled below a key support at $0.7350 against the US Dollar. The XRP/USD pair started a downside move from the $0.7900 swing high and declined by more than 15%.
During the downside move, after $0.7350, it even broke the $0.7100 support level. Moreover, there was a break below a declining channel with support at $0.7050 on the 2-hours chart of the XRP/USD pair.
It cleared the path for more losses and the price declined below the $0.6300 level and settled well below the 100 simple moving average (2-hours). The price traded as low as $0.6265 and it is currently recovering.
It just moved above the 23.6% Fib retracement level of the last downside leg from the $0.7922 high to $0.6265 low. However, any further recovery won’t be easy above $0.7050. The broken support at $0.7050 will most likely act as a resistance.
Furthermore, the 50% Fib retracement level of the last downside leg from the $0.7922 high to $0.6265 low is near $0.7090 to act as a major hurdle for buyers. Having said that, only a close above the $0.7350 and $0.7500 would call for an upside move since both are pivot levels.
On the downside, the $0.6250 level is a short-term minor support. A break below the mentioned $0.6250 support could ignite sold declines in the near term towards the $0.6000 level, which is the next buy zone.