Ripple price is still in an uptrend as long as it is above $0.4180 against the US Dollar. XRP/USD could rise again once if there is a break above the $0.4520 resistance.
- Ripple price recently topped at $0.4738 and later started a downside correction.
- XRP/USD is currently following a bullish flag pattern with resistance at $0.4520 on the 4-hours chart.
- XRP price could decline further, but the $0.4180 area could act as a strong support.
Ripple price analysis
After forming a major bottom near the $0.3700 level, ripple price moved higher above the $0.4000 resistance. XRP/USD traded above the $0.4200 resistance and a crucial bearish trend line to move into a positive zone.
The daily chart of XRP/USD indicates that the price even gained traction above the $0.4500 level and the 50 simple moving average (4-hours). However, the price failed near the $0.4740 zone and formed a high at $0.4738.
Later, the price started a downside correction and declined below the $0.4500 level. There was also a break below the 23.6% Fib retracement level of the last wave from the $0.3849 low to $0.4738 high.
However, the price is still placed above important supports such as $0.4200 and $0.4180. At the outset, the price is following a bullish flag pattern with resistance at $0.4520 on the same chart.
It seems like the pair may continue to move down towards the flag support at $0.4200. More importantly, the main support is near $0.4180 and the 61.8% Fib retracement level of the last wave from the $0.3849 low to $0.4738 high.
Therefore, if the price dips from the current levels, buyers are likely to take a stand near $0.4200 or $0.4180. If they fail to defend the $0.4180 support area, the price may well revisit the $0.3840 swing low in the near term.
On the upside, ripple price must break the flag resistance at $0.4520 to move back in a positive zone. Above the flag resistance, the price could trade higher towards the $0.4740 and $0.4800 resistance levels in the coming days.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. Tou can follow him on twitter at @aayushJS or reach out to him at aayush[at]coingape.com