Ripple Experienced 50% Price Drop, Still Manages To Recover

Ripple experienced a 50 percent drop in one day and went past the $0.1500 support against the US dollar. XRP then tested the $0.1200 support area and shows strong signs of recovery as we are reading further in the XRP price news.

The XRP price is down by more than $0.1000 and it tested the $0.1200 support against the US dollar so right now the price is correcting higher from the $0.1174 low. There is a huge bearish trend line forming with a $0.1900 resistance on the 4-hour charts of the XRP/USD pair data. The price could resume the decline if it fails to recover above the $0.1650.

In the previous three sessions, Ripple experienced a huge decline from the previous $0.2000 and the XRP price declined more than 50 percent, breaking multiple key supports close to the $0.1800 and $0.1650 in order to start a medium downtrend term. The decline was such that the price broke the $0.1500 support and settled below the 100 simple moving average. It also tested the $0.1200 support area with the new monthly low forming close to the $0.1174.

Ripple is trying to correct higher and is trading above the $0.1400 level so it is trading above the 23.6% Fib retracement level from the recent decline of $0.2160 and $0.1174 low. On the upside, the initial resistance is close to the $0.1650 level and the 50% Fib retracement level of the decline from the $0.2160 high to $0.1174 low is close to the $0.1667 level which will behave as a troubled boundary for the bulls.  There is a major bearish trend line that is forming close to the $0.1900 on the 4-hour charts for the pair. The XRP price has to recover above the $0.1650 and $0.1900 resistance levels in order to move back into the positive zone.

The $0.1200 support is very important and the XRP price is showing a few signs above the $0.1400 level. However, the resistance levels could be a major barrier for the bulls. If they don’t manage to overcome the $0.1650 hurdle, the XRP could continue its decline. The first major support on the downside is close to the $0.1320 while the main support is close to the $0.1200 level below which the XRP could reach $0.1000 level.