December 6, 2022

Charted: Ripple (XRP) Recovery Faces Hurdle, Why Dips Could Be Limited

2 min read

Ripple started a strong healing wave above the $0.2500 and $0.3000 levels versus the US Dollar. XRP cost is presently facing a strong resistance, however dips may be restricted listed below $0.2500.

  • Ripple started a fresh upward move after forming a support base near $0.2150 against the US dollar.
  • The rate is now trading well above $0.2500 and the 100 easy moving typical (4-hours).
  • There is a crucial bearish pattern line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
  • The pair spiked to check the trend line and it is currently pulling away towards $0.2750.

Ripple’s XRP Price is Facing Hurdles

After a sharp decrease, ripple’s XRP rate started a combination phase above the $0.2000 level. An assistance base was formed near the $0.2150 level prior to the cost started a strong increase.

The cost broke the $0.2450 and $0.2500 resistance levels to begin a strong increase. There was a close above the $0.2500 level and the 100 easy moving typical (4-hours). The bulls got strength and they had the ability to press the price above the $0.3000 level.

However, upsides were restricted and there was only a spike above $0.3200. There is also a crucial bearish trend line forming with resistance near $0.3550 on the 4-hours chart of the XRP/USD set.

Ripple's XRP Price

Source: XRPUSD on A swing high is formed near $0.3700 on Kraken and the rate is currently retreating lower. There was a break below the $0.3120 support level. It is currently checking the 50% Fib retracement level of the upward move from the $0.2190 swing low to $0.3700 swing high.

If there are more losses, the rate might test the $0.2750 assistance and the 100 easy moving average (4-hours). The 61.8% Fib retracement level of the upward relocation from the $0.2190 swing low to $0.3700 swing high is likewise near $0.2750. The next major support on the downside is forming near the $0.2500 level.

Upsides Capped in XRP?

If ripple starts another healing wave, it might deal with a lot of obstacles, starting with $0.3120. The very first significant resistance for the bulls is near the $0.3250 level.

The primary resistance is now forming near the $0.3500 level and the bearish pattern line. A close above the $0.3500 zone might lead the price towards the $0.4000 level in the near term.

Technical Indicators

4-Hours MACD –-- The MACD for XRP/USD is acquiring momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) –-- The RSI for XRP/USD is now well above the 60 level.

Significant Support Levels –-- $0.2800, $0.2750 and $0.2550.

Significant Resistance Levels –-- $0.3150, $0.3250 and $0.3500.