Ripple Price Analysis: XRP/USD Recovery Could be Capped
Ripple price tumbled recently below $0.3800 against the US Dollar. XRP/USD may recover in the short term, but it is likely to face hurdles near $0.4350.
Key Talking Points
Ripple price fell significantly and dropped below the $0.4000 support against the US Dollar.
There was a break below a contracting triangle with support at $0.4200 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
XRP price is recovering, but there are many resistance on the upside near $0.4350.
Ripple Price Forecast
During the past three days, there were losses noted below the $0.5800 level in Ripple price against the US Dollar. The XRP/USD pair declined heavily and broke the $0.4800 and $0.4400 support levels.
Looking at the chart, the price even broke the $0.4200 and $0.4050 support levels to move into a negative zone. The price broke the $0.3800 level and is currently trading well below the 100 simple moving average (2-hours).
During the decline, there was a break below a contracting triangle with support at $0.4200 on the 2-hours chart of the XRP/USD pair. The pair traded as low as $0.3735 and later the price started an upside correction.
There was a break above the 23.6% Fib retracement level of the last decline from the $0.4989 high to $0.3757 low. On the upside, there is a strong resistance formed near the $0.4350 level.
The 50% Fib retracement level of the last decline from the $0.4989 high to $0.3757 low is also near the $0.4350 level. Moreover, the triangle resistance trend line is still active with resistance near the $0.4400 level.
Therefore, if ripple price corrects higher, it is likely to face a lot of barriers near the $0.4350 and $0.4400 levels. Above these, the price is likely to recover towards the $0.5000 level.
On the downside, an initial support is near the $0.3800 level, below which the price could tumble further. The next major support below $0.3800 for XRP/USD is near the $0.3500 level.