Ripple price is holding a key support area at $0.2000 against the US Dollar. XRP/USD upside remains capped by the $0.2400 resistance and 100 SMA (H4).
Key Talking Points
Ripple price recently tested an important support at $0.2000 against the US Dollar and recovered.
The XRP/USD pair failed to break an important bearish trend line with current resistance at $0.2360 on the 4-hours chart (Data feed via Bittrex).
The pair might struggle to move above the $0.2400 resistance and the 100 simple moving average (4-hours).
Ripple Price Forecast
It was mostly a bearish week for Ripple price below $0.2600 against the US Dollar. The XRP/USD pair failed to sustain losses below the $0.2500 handle and started a downside move.
The decline was steady and it broke the $0.2350 and $0.2250 support levels during the downside. However, the decline was protected by the all-important $0.2000 support. The mentioned $0.2000 area acted as a support on many occasions and it might continue to play a crucial role.
The price recently recovered from the $0.1975 low and moved above the 50% Fib retracement level of the last decline from the $0.2805 high to $0.1975 low. However, the upside move was protected by an important bearish trend line with current resistance at $0.2360 on the 4-hours chart.
The 100 simple moving average (4-hours), currently at $0.2401 also acted as a barrier and protected more upsides. Lastly, there was no close above the 61.8% Fib retracement level of the last decline from the $0.2805 high to $0.1975 low.
The price is down moving down and is currently below the $0.2300. It might slide once again towards the $0.2100 or $0.2000 support area.
In the medium term, XRP/USD must stay above the $0.2000 support to recover above the $0.2500 level. On the upside, the next major resistance is around the $0.2800 level.
On the downside, if sellers break the $0.2000 support, there can be a push towards the next major support at $0.1800.