- Ripple surged above $0.3400 resistance and extended the gains above $0.3750 before retracing.
- XRP/USD declines likely to be contained above the 100 SMA 1-hour.
In the recent surge, XRP/USD witnessed a strong bullish force above the critical resistance at $0.3400. The price pulled higher above the hurdles at $0.3500 and $0.3600. It later extended the gains beyond the resistance at $0.3750 but settled marginally above the 100 SMA 1-hour. The retracement that followed failed to find support at the 61.8% Fib retracement level taken between the last swing high of $0.3803 and a swing low of $0.3071.
Short-Term Bullish Bias: 1-Hour Chart
XRP/USD has settled at $0.3400 (key support). A forming bullish momentum has pulled it above the 50% Fib level (broken support). While at $0.3485, XRP bulls are eyeing the 61.8% Fib level with most indicators showing a bullish bias. XRP/USD needs to correct above the 61.8% Fib level which currently coincides with the 50 SMA 1-hour in order to open the door for more upward movement and retrace steps above $0.3500 resistance level. The Relative RSI 1-hour is gently sloping upwards to confirm the bullish momentum.
However, if Ripple fails to break past the 50 SMA and establish support above $0.3500 the price could breakdown again towards the support at $0.33 and the 100 SMA 1-hour. We can expect the downside to being contained and a comeback if the price stays above the supply zone between $0.3100 and $0.3200.
Key Technical Indicators
Relative Strength Index (RSI) 1-hour: Following the decline below 50, it is gently heading north at 47.98.
MACD 1-hour: Revamping upwards within the bearish zone.
Resistance 1: 61.8% Fibo coinciding with the 50 SMA 1-hour.
Resistance 2: $0.3500.
Resistance 3: $0.3747 (Medium-term hurdle).
Support 1: $0.3400.
Support 2: 100 SMA 1-hour (close to 38.2% Fib level).
Support 3: $0.3300.
Demand Area: $0.3000 – $0.3300.
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