03 Feb Charted: Ripple (XRP) Holding Key Support, Why It Could Rally Again To $0.45
Ripple corrected gains from well above $0.5000 against the US Dollar. XRP price is holding the key $0.3400 support, and it is likely to resume higher towards $0.4200 and $0.4400.
- Ripple started a fresh decline after it failed to clear the $0.5500 resistance against the US dollar.
- The price is still holding the $0.3400 support zone and the 100-day simple moving average.
- There is a major bearish trend line forming with resistance near $0.4650 on the daily chart of the XRP/USD pair (data source from Kraken).
- The pair is rise back towards the $0.4500 and $0.4650 resistance levels in the near term.
Ripple’s XRP Price Could Rally Again
After a clear break above $0.3200, ripple’s XRP price started a strong increase. There was a clear break above the $0.4000 resistance zone and the $0.5000 level.
The price even spiked above $0.5200 and settled above the 100-day simple moving average. However, the bulls failed to clear the $0.5500 resistance area. A high was formed near $0.5343 before starting a fresh decline.
There was a break below the $0.4200 and $0.4000 support levels. The price even declined below the 50% Fib retracement level of the upward move from the $0.2456 swing low to $0.5343 high. The price is still holding the $0.3400 support zone and the 100-day simple moving average.
Source: XRPUSD on TradingView.com
The 61.8% Fib retracement level of the upward move from the $0.2456 swing low to $0.5343 high is also acting as a support. On the upside, the price is facing hurdles near $0.4000. There is also a major bearish trend line forming with resistance near $0.4650 on the daily chart of the XRP/USD pair.
It seems like the price is likely to revisit the $0.4400 and $0.4500 resistance levels as long as there is no break below $0.3200.
Downsides Limited in XRP?
If ripple fails to start a decent increase, it could find support near the $0.3680 and $0.3600. The first major support is near the $0.3550 level.
The main support could be near the $0.3200 level. If the price fails to stay above $0.3200, there could be a downside extension towards the $0.2450 support zone.
Daily MACD – The MACD for XRP/USD is slowly gaining momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for XRP/USD is still above the 50 level.
Major Support Levels – $0.3650, $0.3550 and $0.3200.
Major Resistance Levels – $0.4000, $0.4400 and $0.4500.