Ripple started a downside correction from the $0.2110 resistance region against the US Dollar. XRP price seems to be following a bullish flag pattern and it could resume its rally above $0.2000 and $0.2100.
- Ripple price is correcting lower from the $0.2118 swing high against the US dollar.
- The price is trading nicely above the $0.1900 support and the 100 simple moving average (4-hours).
- There is a major bullish flag forming with resistance near $0.2050 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to start a fresh rally once it clears the $0.2025 and $0.2050 resistance levels.
Ripple Price Could Resume Its Rally
This past week, we saw a sharp increase in ripple above the $0.1900 resistance. XRP price even surged above the $0.2000 level and settled well above the 100 simple moving average (4-hours).
It traded to a new monthly high at $0.2118 before starting a downside correction. There was a break below the $0.2050 level, plus the 23.6% Fib retracement level of the upward move from the $0.1741 swing low to $0.2118 high.
The price even spiked below the $0.1950 level, but the $0.1920 level acted as a strong support. More importantly, the 50% Fib retracement level of the upward move from the $0.1741 swing low to $0.2118 high is acting as a significant buy zone.
The bears made two attempts to pierce the $0.1920 support, but they failed. It seems like there is a major bullish flag forming with resistance near $0.2050 on the 4-hours chart of the XRP/USD pair.
Ripple (XRP) testing $0.1950. Source: TradingView.com
On the upside, the price is facing hurdles near $0.2025 and $0.2050. A successful close above the bullish flag resistance may perhaps restart the rally and the price might surge towards $0.2100. The next target for the bulls could be $0.2200 in the coming sessions.
Bearish Scenario for XRP
If ripple price fails to surpass the $0.2025 and $0.2050 resistance levels, there are chances of a downside extension. The main support on the downside is near the $0.1920 level.
A proper close below the $0.1920 and $0.1900 support levels could spark a sharp decline towards the $0.1750 level. An intermediate support could be $0.1880 or the 100 simple moving average (4-hours).
4-Hours MACD – The MACD for XRP/USD is slowly moving back into the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is currently just below the 50 level.
Major Support Levels – $0.1950, $0.1920 and $0.1900.
Major Resistance Levels – $0.2025, $0.2050 and $0.2110.
Take advantage of the trading opportunities with Plus500
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Credit: Source link