XRP Lack Of Strength Suggest False Rally Is On

This day, we are seeing a lot of good progress in the latest cryptocurrencies news as many coins add 20% to their value and contribute to increasing the total market cap. While BTC is trading near $6,500, Ripple’s token has lack of strength now. The XRP lack of strength is pointing to a fresh decrease in the near term and suggesting a false rally.

In the past three sessions, Ripple gained strength above the $0.1400 and $0.1450 resistance levels. The XRP price surged above the $0.1500 resistance level and started moving into a short term positive zone.

Still, the Ripple news now indicate that the price rally has been only by 8% overnight while a lot of other cryptocurrencies added anywhere from 20% to 30% to their current values. A new weekly high for XRP was formed near the $0.1720 resistance area.

Currently, Ripple is correcting lower and trading below the $0.1650 level. There was a break below the 23.6% retracement level of the recent rise from the $0.1407 low to the $0.1734 high. On the downside, we can see the initial support near the $0.1600 level.

The first major support during this XRP lack of strength is positioned near the $0.1580 level. There is also a key bullish trend line forming with support near $0.1570 on the hourly chart of the XRP/USD pair.

The trend line support is close to the 50% Fib retracement level of the recent rise in the XRP price which went from $0.1407 (as its low) to the $0.1734 as its high. Therefore, the dips towards the $0.1600 and $0.1580 support levels are likely to find a decent buying interest.

Despite the recent rally, the current XRP price is weak and suggests that Ripple (XRP) might fail to start a fresh increase above the $0.1700 level. As stated, the main support area is now near the $0.1580 level.

If the bulls fail to keep the price above $0.1580 and $0.1550, the XRP lack of strength may disappear. There would be a risk of a larger decline in the coming sessions. The next major support is near the $0.1450 level. Conversely, the bulls are very likely to lead the price above the $0.1720 and $0.1780 levels.

The technical indicators for the XRP price are as following:

• Hourly MACD – The MACD for XRP/USD is slowly moving back into the bearish zone.

• Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting lower towards the 50 level.
• Major Support Levels – $0.1600, $0.1580 and $0.1570.

• Major Resistance Levels – $0.1650, $0.1700 and $0.1720.