XRP Price Shock Follows After Massive Drop, Currently Rebounding

The Ripple XRP news yesterday were quite shocking for many investors. The investors saw the price of Ripple’s token going to as low as $0.2500 and recording a steep fall of more than 10% overnight. Currently, the XRP price shock is not as strong as it used to be and XRP is rebounding to a new level at $0.2732.

It all started yesterday when we saw a downside correction which was quite minor – bringing the Ripple (XRP) price from $0.3000 to $0.2850 in a couple of hours. However, XRP managed to hold the key support at $0.2850 and declined heavily in the last three sessions.

During this slide, there was a continuous break below a few important supports near $0.2800 and $0.2720. Moreover, the price of XRP settled below $0.2800 which is when the XRP price shock started. This opened the doors for more downsides below the $0.2650 support line.

Finally, the price of XRP spiked below the $0.2550 and $0.2500 support levels and was featured among the losers in the cryptonews. Despite the fact that the price action had $0.2500 area as a strong support, XRP managed to drop quickly and the only good thing was the fact that it recovered aggressively and climbed back above the $0.2600 level.

Additionally, there was a break above the 50% Fib retracement level of the recent decline from a high of $0.2908 to a low of $0.2470. This was the XRP price shock at its finest – and what led many investors to believe that the XRP/USD pair is losing momentum quickly.

Right now, if the price fails to correct above $0.2800, there is a risk of another slide below the $0.2650 support line. The next support is near the $0.2570 and $0.2550 levels, accordingly. When looking at the chart, the XRP price is clearly retreating after testing the main $0.2500 support area. There are many positive signs visible on the chart, but the bulls could find it difficult to push the price back above $0.2750 and $0.2800.

The technical indicators show the following:

• Hourly MACD – The MACD for XRP/USD is right now moving nicely in the bullish zone.
• Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is moving higher and is currently near the 40 level. 
• Major Support Levels now at $0.2650, $0.2550 and $0.2500. 
• Major Resistance Levels now at $0.2750, $0.2800 and $0.2850.