Ripple price after a monster decline found support at $0.8800 against the US Dollar. XRP/USD is correcting higher, but upsides remain capped at $1.55.
Key Talking Points
Ripple price finally found strong buying interest near the $0.8800 level against the US Dollar.
There is a major descending channel forming with current resistance at $1.55 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
The pair must break and settle above the $1.55-1.60 level to gain upside momentum.
Ripple Price Forecast
After a nasty free fall below the $1.00 handle, Ripple price found support against the US Dollar. The XRP/USD pair traded as low as 0.8800 from where an upside correction was initiated.
The pair has recovered substantially and moved above the 38.2% Fib retracement level of the last fall from the $2.2527 high to $0.8800 low. At the moment, the price is challenging a major resistance area near $1.5500.
On the upside, there is major descending channel forming with current resistance at $1.5500 on the 2-hours chart of the XRP/USD pair. The channel resistance is near the 50% Fib retracement level of the last fall from the $2.2527 high to $0.8800 low.
Therefore, a break above the channel resistance at $1.5500 would open the doors for further gains. The next major resistance is at $1.7270 and the 100 simple moving average (2-hours).
Should there be a 2-hour close above $1.7300, the price will most likely move into the bullish zone. The next target could be $2.00, followed by the $2.20 level.
On the downside, an initial support is at $1.2040 which is a pivot zone. If the price fails to settle above the $1.5500 and $1.7300 resistance levels, the downtrend may resume. In the mentioned scenario, the price may possibly retest the last swing low of $0.8800.
To sum up, the current price action on the 2-hours chart of XRP/USD is still bullish unless buyers manage to push the pair above the $1.5500 and $1.7300 resistance levels.