Ripple Risks Sharper Decline As Double Top Pattern Forms

Ripple risks sharper decline after it spiked higher and retested the key support of $0.2550 and XRP failed to break it so it’s now showing bearish signs below it as we are reading in our XRP news today.

Ripple failed to clear the $0.2550 resistance level and formed a double top against the US Dollar. The price is trading below $0.2450 support and the 100 simple moving average with a key connecting the bearish trend line that forms resistance close to the $0.2465 on the 4-hour charts of the pair. The pair will likely decline sharply if there’s a close below the $0.2400 level.

Over the past week, we saw a recovery wave for ETH and BTC forming as well as for XRP. The price of the asset broke the $0.2450 and $0.2550 resistance levels as the price even spiked above $0.2520 level, settling above the 100 simple moving average. However, the price failed the key barrier at $0.2550 so now Ripple risks a sharper decline, trading well below the $0.2450.

There was a break below the 23.6% fib retracement level of the upward movement at $0.2195 low to the $0.2550 high. It now seems that there’s a key connecting bearish trend line forming with the resistance close to $0.2465 on the 4-hour charts. The initial support on the downside is close to the $0.2400 level while the first major support is close to the $0.2380 level. XRP is nearing the 50% fib retracement level from the upward move at $0.2195 low to $0.2550 high. If there’s a clear break below the $0.2380 support, the bears will gain strength. The next key support level is close to the $0.2300 level below which the bears will try to retest the $0.2200.

If XRP stays above the $0.2400 and the $0.23800 support levels, it could try a fresh increase with the initial resistance nearing the $0.2450 level. The move into a positive zone and the extended rise means that the price has to surpass the $0.2550 resistance level and the next key barrier for the bulls at $0.2620. The 4-hour MACD for the pair is slowly gaining pace in the bearish zone while the 4-hour RSI is well below the 50 levels.