After struggling to clear the $0.4000 resistance, ripple price started a downside move against the US Dollar. The XRP/USD pair declined heavily and broke the $0.3800 and $0.3550 support levels. There was even a close below the $0.3600 level and the 100 hourly simple moving average. Finally, the price broke the $0.3440 support and traded as low as $0.3289. The price is currently consolidating losses and it may correct a few points towards $0.3550.
An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $0.3952 high to $0.3289 low. There is also a major bearish trend line formed with resistance at $0.3560 on the hourly chart of the XRP/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $0.3952 high to $0.3289 low. Therefore, if the price corrects higher, it could face a strong resistance near the $0.3440 or $0.3550 resistance levels. On the downside, the recent low is a short term support at $0.3280 followed by $0.3250.
Looking at the chart, ripple price clearly moved into a bearish zone below $0.3600 and the 100 hourly simple moving average. Any upside correction is likely to face hurdles near $0.3550.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is placed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 40 level.
Major Support Level – $0.3280
Major Resistance Level – $0.3550
