Ripple (XRP) Price Starts Rebounding After Massive Drop

Ripple (XRP) price starts rebounding after it declined heavily since breaking the key resistance at $0.2850 support area against the US dollar. The price tested the main $0.2500 support area and it is now rebounding above $0.2650 as we are reading further in the XRP news today.

There is a major bearish trend line forming with resistance near the $0.2800 on the charts of the XRP/USD pair but there are no signs of a strong recovery and it might rebound towards the $0.2850 resistance level. Yesterday, there was a minor downside correction in Ripple from the $0.3000 resistance against the US dollar. However, XRP’s price failed to hold the key resistance level of $0.2850 support area and declined heavily in the last three sessions.

During the slide, there was a break below a few important supports near the $0.2800 and $0.2720 and moreover, the price settled below the $0.2800 and 100 hourly simple moving average as it opened the doors for more downsides below the $0.2650 support. Finally, the price spiked below the $0.2550 and $0.2500 support levels. The price action suggests that the latest support area acted as strong support. As a result, the Ripple (XRP) price starts acting as a strong altcoin with strong support after the aggressive recovery and fast climb back above the $0.2600 level.

Additionally, there was a break above the 50% Fib retracement level of the recent decline from the $0.2908 high to a $0.2470 low. There was also an immediate resistance on the upside near the $0.2720 and $0.2750 level. The main problem will be the level to the $0.2750 since it coincides with the 61.8 percent FIB retracement level of the recent decline.

What is more important, there is a major bearish trend line forming with the resistance line near the $0.2800 on the hourly charts of the XRP/USD pair. On the downside, the $0.2650 area is strong support for the current wave and as long as a ripple is trading above the $0.2650 support; it could recover towards the $0.2800 and the $0.2850 resistance level. Conversely, if the price fails to correct further, there is a major risk of another slide below the $0.2650 support. The next support is near the $0.2570 level.