Ripple price is recovering nicely from the $0.2240 support area against the US dollar.
A key inverse head and shoulders is likely forming with support near $0.2320.
There is a major bearish trend line forming with resistance near $0.2415 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair could start another rally towards $0.2550 if it clears the $0.2420 resistance.
Ripple Price Eyeing Bullish Break
Recently, we saw a downside extension in ripple below the $0.2320 support area against the US Dollar. XRP price declined below the $0.2280 support and settled below the 100 hourly simple moving average.
Finally, the price tested the $0.2240 support area, where the bulls emerged. A swing low was formed near $0.2236 and the price started a strong recovery. It broke the $0.2300 resistance area and the 100 hourly SMA.
Besides, there was a break above the 23.6% Fib retracement level of the recent drop from the $0.2540 high to $0.2236 low. More importantly, there is a key inverse head and shoulders likely forming with support near $0.2320.
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.
The 50% Fib retracement level of the recent drop from the $0.2540 high to $0.2236 low is also near $0.2388. Therefore, a clear break above the $0.2420 resistance area could start a strong rise.
The next major resistance is near the $0.2500 area, above which ripple could even attempt a break above the $0.2540 high in the coming sessions. Any further gains could lead the price towards $0.2620.
Here Is A Bearish Case For XRP
As mentioned XRP needs to surpass the $0.2420 resistance to continue higher. If it fails to clear $0.2420, there are chances of a fresh decline below the $0.2350 level in the near term.
The first major support is near the $0.2300 level, below which ripple may perhaps decline towards the key $0.2240 support area in the near term.
Hourly MACD – The MACD for XRP/USD is slowly gaining strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is rising and it is now 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. The post appeared first on NewsBTC.