Today, the crypto news show that Ripple reversed and is recovering nicely from the $0.2240 support area against the US dollar. A key inverse head and shoulders pattern is forming with support near $0.2320. Even though we saw a downside extension in the price of XRP below the $0.2320 support area against the US Dollar, XRP declined below $0.2280 and worried a lot of investors.
Finally, the price of this cryptocurrency tested the $0.2240 support area which is where the bulls emerged. A swing low was formed near $0.2236 and the price started its strong recovery. This is how it broke the $0.2300 resistance area and the 100 hourly SMA.
Ripple reversed and there was a break above the 23.6% Fib retracement level of the recent drop from the $0.2540 high to the $0.2236 low. More importantly, we saw a key inverse head and shoulders pattern forming with support near $0.2320.
The XRP news now show that Ripple already surpassed the neckline resistance near the $0.2350 resistance area. However, there is a major bearish trend line forming with resistance near $0.2415 on the hourly chart of the XRP/USD pair.
Right now, the 50% Fib retracement level of the recent drop from a high of $0.2540 to a low of $0.2236 is also near $0.2388. Therefore, a clear break above the $0.2420 resistance area is needed for a strong rise to begin.
As analysts say, Ripple reverses but the next major resistance for it is near the $0.2500 area, above which it could even attempt a break above the $0.2540 high in the coming sessions. Any further gains could obviously lead the price towards $0.2620.
As mentioned before, XRP needs to surpass the $0.2420 resistance if it wants to continue higher. However, it if fails to clear the $0.2420 region, there are big chances of a fresh decline below the $0.2350 level in the near term.
This is why analysts put their first major support near the $0.2300 levels, below which Ripple may perhaps decline towards the key $0.2240 support area in the near term.
The technical indicators now are as following:
- Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is slowly increasing and now sits well above the 50 level.
- Major Support Levels – $0.2350, $0.2300 and $0.2240.
- Major Resistance Levels – $0.2415, $0.2420 and $0.2500.
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