Ripple price tested the $0.3550-70 resistance recently and declined against the US Dollar. XRP/USD is currently trading in a broad range between $0.3120 and $0.3550.
Key Talking Points
· Ripple price failed to overcome a strong resistance near $0.3550-0.3570 against the US Dollar.
· There is a major bullish trend line forming with support at $0.3300 on the 2-hours chart of the XRP/USD pair (Data feed via Bitstamp).
· XRP price could decline in the short term, but it is likely to find support near $0.3300 and $0.3120.
Ripple Price Forecast
This week, there was a slow and steady rise from the $0.3090-0.3120 support base in Ripple price against the US Dollar. The XRP/USD pair traded above the $0.3500 resistance, but it failed to overcome a strong resistance near $0.3550-0.3570.
Looking at the chart, the price tested an important resistance zone near $0.3550 and started a downside move. It declined below the 23.6% Fib retracement level of the last leg from the $0.3098 low to $0.3571 high.
However, there are many key supports on the downside, starting with the $0.3350 level. The next support is the 50% Fib retracement level of the last leg from the $0.3098 low to $0.3571 high at $0.3334.
Below the 50% Fib level, there is a major bullish trend line forming with support at $0.3300 on the 2-hours chart of the XRP/USD pair. Above the trend line, the 100 SMA (2-hours) is positioned near the $0.3305 level to act as a support.
Should there be a break below the trend line and $0.3305, the price may drop back towards the all-important range support near the $0.3090-0.3120 zone.
Any further declines are very unlikely unless the market sentiment changes back to bearish for a push towards $0.2800. On the upside, an initial resistance is near the $0.3450 level followed by the range resistance near $0.3550.
A successful close above the $0.3550-03570 range resistance will most likely clear the path for more gains towards $0.4000 in the near term.
The market data is provided by TradingView.
