Ripple Price Analysis: Risk of Larger Decline Below $0.24

21 September 2020

in XRP

Reading Time: 2 mins read

Ripple price is still struggling to clear the $0.2500 and $0.2575 resistance levels against the US dollar.
The price is consolidating above the $0.2400 support, but it is below the 55 simple moving average (4-hours).
There is a major breakout pattern forming with support near $0.2430 on the 4-hours chart of the XRP/USD pair (data source from Bittrex).
The pair could decline heavily if it breaks the $0.2400 support level in the near term.

Ripple price is facing an uphill task near $0.2500 against the US Dollar. XRP price must break $0.2500 and $0.2575 to avoid a nasty decline below $0.2400.

Ripple Price Analysis

After testing the $0.2300 zone, ripple price started a decent recovery against the US Dollar. The XRP/USD pair traded above the $0.2400 resistance zone and the 55 simple moving average (4-hours).

However, the price struggled to clear the $0.2575 zone. A high is formed near $0.2580 before the price declined back below $0.2500. There was also a break below the $0.2450 support and the 55 simple moving average (4-hours).

A low is formed near $0.2424 and the price is currently consolidating. It is testing the 55 SMA, and the 23.6% Fib retracement level of the recent decline from the $0.2580 swing high to $0.2424 low.

It seems like there is a major breakout pattern forming with support near $0.2430 on the 4-hours chart of the XRP/USD pair. If there is a downside break below the trend line, there is a risk of a larger decline below the $0.2400 support.

The next major support is near the $0.2300 level, below which the bears might aim a test of the $0.2200 level. The channel resistance is near the $0.2500 level. The 50% Fib retracement level of the recent decline from the $0.2580 swing high to $0.2424 low is also near the channel resistance.

Therefore, the price must break the channel resistance to start a fresh increase. The next major resistance is near the $0.2575 level, above which the bulls are likely to take control and aim a test of the $0.2720 level.

Ripple Price

Looking at the chart, ripple price is clearly consolidating above the $0.2400 support, but it is below the 55 simple moving average (4-hours). Therefore, the price could decline heavily if it breaks the $0.2400 support level in the near term.