Ripple price started a fresh decline from the $0.4870 resistance against the US Dollar. XRP/USD could continue to move down towards the key $0.4310 support.
- Ripple price is currently correcting lower from the $0.5000 resistance area.
- XRP/USD is following a declining channel with resistance at $0.4610 on the 2-hours chart.
- XRP price is likely to continue lower towards an important support zone near the $0.4310 level.
Ripple Price Analysis
After buyers failed to push ripple price above the $0.5000 resistance, there was a downside reaction against the US Dollar. XRP/USD followed a bearish pattern, declined steadily, and formed an intermediate high at $0.4870.
The 2-hour chart indicates that the price remained in a bearish zone and recently declined below the $0.4600 support and the 100 simple moving average (2-hours), which is a short-term negative sign.
The price dived towards the $0.4340 level recently and formed a low at $0.4349. Later, the price started an upside correction and moved above the 23.6% Fib retracement level of the last drop from the $0.4870 high to $0.4349 low.
However, the price is likely to face a lot of obstacles near $0.4600 and $0.4610 levels. XRP/USD is also following a declining channel with resistance at $0.4610 on the same chart.
The channel resistance coincides with the 50% Fib retracement level of the last drop from the $0.4870 high to $0.4349 low. Besides, the 100 simple moving average (2-hours) is also positioned near the channel resistance and $0.4600.
Therefore, if the price continues to recover, it could face a strong resistance near the $0.4600 and $0.4610 levels. Above the channel resistance, the price may well move back in a positive zone for a run towards the $0.5000 level.
On the other hand, if the ripple price fails to recover above $0.4600 and $0.4610 resistance levels, there could be more losses. The main support on the downside is near the $0.4310 level, which was a resistance earlier. Therefore, there are high chances of buyers taking a solid stand near the $0.4310 level to protect more losses in the near term