A Key Trend is Forming For Ripple (XRP) and a Swift Rally Could Occur
Ripple is up over 5% and it revisited the $0.3250 resistance zone against the US Dollar. XRP price is correcting gains, but it is likely to surge further above $0.3300.
- Ripple gained bullish momentum and climbed above the $0.3200 resistance against the US dollar.
- The price traded to a new weekly high near the $0.3280 level and it settled well above the 100 hourly SMA.
- There is a short-term contracting triangle forming with resistance near $0.3235 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair seems to be following a nice uptrend and the price could continue above $0.3250 and $0.3300.
Ripple Price Gains 5%
In yesterday’s analysis, we discussed a strengthening case for ripple above the $0.3055 resistance. XRP price was able to clear the $0.3055 and $0.3065 resistance levels.
As a result, there was a strong increase above the $0.3120 and $0.3200 resistance levels. The price is up over 5% and it even spiked above the $0.3250 resistance. A new weekly high near the $0.3280 level and it settled well above the 100 hourly SMA.
The price is currently correcting lower and trading below $0.3200. There was a break below the 23.6% Fib retracement level of the recent surge from the $0.2975 low to $0.3279 high. An initial support is near the $0.3150 level.
Ripple price surpasses $0.3200. Source: TradingView.com
The next major support is near the $0.3120 level. It is close to the 50% Fib retracement level of the recent surge from the $0.2975 low to $0.3279 high. It seems like there is a short-term contracting triangle forming with resistance near $0.3235 on the hourly chart of the XRP/USD pair.
If the bulls succeed in clearing the triangle resistance, there are chances of a strong increase above the $0.3250 and $0.3260 resistance levels. The next hurdle is near the $0.3300 level, above which the price might even climb above the $0.3320 level.
Resistance Turned Support for XRP
If ripple starts an extended downside correction, the $0.3120 support level is likely to stop losses. If there is a downside break below $0.3120, the price could test the $0.3080 support.
Any further losses may perhaps lead the price towards the main $0.3055 support zone (the previous major resistance and breakout zone).
Hourly MACD – The MACD for XRP/USD is now moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is still above the 50 level.
Major Support Levels – $0.3150, $0.3120 and $0.3080.
Major Resistance Levels – $0.3235, $0.3250 and $0.3300.