Ripple price corrected lower after a massive rally above the $0.7500 level against the US Dollar. XRP/USD is now approaching the key support at $0.4950.
- Ripple price is correcting lower, but it remains supported near the $0.4950-0.5000 zone.
- XRP/USD is trading inside a major contracting triangle with resistance at $0.5500 on the 4-hours chart.
- XRP price needs to stay above the $0.4950 support to stay in the current uptrend.
Ripple price analysis
This past week, there was a solid rally in ripple price above the $0.3340 pivot level against the US Dollar. XRP/USD surged above the $0.4900, $0.5000 and $0.6200 resistance levels.
The 4-hour chart indicates that the price traded close to the $0.8000 level and formed the $0.7996 high. Later, the price started a downside correction and declined below the $0.6000 level, but it is still well above the 100 simple moving average (4-hours).
During the decline, the price broke the $0.6200 support zone and the 50% Fib retracement level of the last major upward move from the $0.3115 low to $0.7996 high. However, the decline found support near the $0.4950-0.5000 zone.
The mentioned $0.4950 level is very important since it was a resistance earlier and now it represents the 61.8% Fib retracement level of the last major upward move from the $0.3115 low to $0.7996 high.
More importantly, there is a major contracting triangle forming with resistance at $0.5500 on the same chart. The triangle support is near the $0.4800 level and resistance is at $0.5500. Therefore, the next move in XRP/USD could be either above $0.5500 or below $0.4950-0.4800.
If there is a bearish break below $0.4950 and $0.4800, the price could decline all the way back to the $0.3340 pivot level. On the other hand, if the price breaks the $0.5500 resistance, there could be a fresh upward move towards the $0.6200 level.
Above $0.6200, the price will most likely trade above the $0.7000 level. The overall price action is positive for ripple as long as the price is above the $0.4950 and $0.4800 support levels. On the upside, sellers are likely to take a stand near $0.6200 and $0.7000.
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Passionate about technology and science. Pursuing Doctorate in the field of Data Mining, Professor by profession and loves writing interesting articles about Cryptocurrencies, bitcoin, Ethereum, ripple, Forex and commodities. Reach out to her [email protected]