29 Dec Charted: Ripple (XRP) Tumbles 20%, Why It Could Test $0.20
Ripple started a fresh decline after it failed to stay above $0.3000 against the US Dollar. XRP price is over 20% and it seems like the bears are aiming a test of the $0.2000 support.
- Ripple started a fresh decline from well above the $0.2800 support zone against the US dollar.
- The price is now trading well below $0.2500 and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $0.2460 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is gaining bearish momentum and it could continue to move down towards $0.2000 or $0.1880.
Ripple’s XRP Price Tumbles Again
After a sharp decline, ripple’s XRP price started a decent recovery wave. It broke the $0.3000 and $0.3200 resistance levels, but it failed to continue higher. A swing high was formed near $0.3867 before the bears took back control.
There was another sharp decline and the price tumbled below the $0.3000 support. The price broke the $0.2800 support and settled well below 100 simple moving average (4-hours).
There was also a break below the 61.8% Fib retracement level of the recovery wave from the $0.2004 swing low to $0.3867 high. It opened the doors for more downsides below $0.2400. There is also a major bearish trend line forming with resistance near $0.2460 on the 4-hours chart of the XRP/USD pair.
Source: XRPUSD on TradingView.com
The price is now trading below the 76.4% Fib retracement level of the recovery wave from the $0.2004 swing low to $0.3867 high. It seems like the bears are likely to aim more losses below $0.2200. Th next key support is near the $0.2000 level.
Any more losses could lead the price towards the $0.1550 zone. It is close to the 1.236 Fib extension level of the recovery wave from the $0.2004 swing low to $0.3867 high.
Upsides Capped in XRP?
If ripple starts a recovery wave, it could face a lot of hurdles, starting with $0.2350. The first major resistance for the bulls is near the $0.2500 level and the bearish trend line.
The main resistance is now forming near the $0.3000 level, above which it could recover towards the 100 simple moving average (4-hours).
4-Hours MACD – The MACD for XRP/USD is gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 40 level.
Major Support Levels – $0.2050, $0.2000 and $0.1550.
Major Resistance Levels – $0.2450, $0.2500 and $0.3000.