Ripple price was unable to stay above the $0.4100 and $0.4000 support levels. XRP is likely to extend losses in the short term towards $0.3640 before it could bounce back above $0.4100.
- The price recently traded below the key $0.4000 and $0.3980 support levels.
- XRP broke a major bullish trend line with support at $0.4000 on the 30-minute chart.
- Ripple price tested the $0.3820 support level and it is currently correcting higher.
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Ripple Price Analysis (XRP to USD)
This week, ripple price started a steady rise from the $0.3800 support area. XRP/USD traded above the $0.4000 resistance level to move into a positive zone. However, the price struggled to gain momentum above $0.4100 and failed to stay above $0.4080.
Click to Enlarge Chart
Looking at the 30-minute chart of XRP/USD, the pair traded as high as $0.4127 recently before starting a downward move. It broke the key $0.4000 support level and settled below the 25 simple moving average (30-minute chart).
Moreover, the price traded below a major bullish trend line with support at $0.4000 on the same chart. It opened the doors for more losses below $0.3900 and the price traded close to the $0.3800 support.
A swing low was formed at $0.3812 and the price is currently correcting above the 23.6% Fib retracement level of the recent decline from the $0.4127 high to $0.3812 low.
On the upside, there are many hurdles near the $0.3980 and $0.4000 levels (the recent support levels). Besides, the 25 simple moving average (30-minute chart) is also positioned near the $0.4000 level to act as a strong resistance.
More importantly, the 50% Fib retracement level of the recent decline from the $0.4127 high to $0.3812 low is just below $0.4000. Therefore, the price is likely to struggle near the $0.4000 resistance area.
If there is an upside break above $0.4000, ripple price could start a fresh increase towards $0.4080 or even $0.4100. The next key resistance is at $0.4125, followed by $0.4150.
Conversely, if ripple price fails to climb back above $0.4000, there could be a downside extension below the $0.3800 support level. The next main support is near $0.3640, where the bulls may take a stand.
The market data is provided by TradingView, Bitfinex.
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