Ripple price declined sharply from the $0.5261 swing high. XRP/USD is currently trading near a crucial support zone at $0.4700, which is likely to hold losses
- Ripple price declined recently below the $0.5000 support area.
- There was a break below a major bullish trend line at $0.5060 on the 30-minute chart.
- XRP price is likely to bounce back as long as it is above the $0.4700 support area.
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Ripple Price Analysis
Recently, there was a decent recovery from the $0.4700 support area in ripple price. During the recovery, the price traded above the $0.5000 and $0.5200 resistance levels.
Click to Enlarge Chart
Looking at the 30-minute chart of XRP/USD, the pair even traded above the $0.5300 level and formed a high at $0.5312. Later, there was a downside correction and the price declined below the $0.5200 support.
An intermediate high was formed at $0.5261 and the price settled below the 25 simple moving average (30-minute). Moreover, there was a break below a major bullish trend line at $0.5060 on the same chart.
Later, the price tumbled below the $0.5000 support and tested the next key support area between $0.4700 and $0.4800. The stated $0.4700 support area is significant since it acted as a barrier for sellers on many occasions.
Therefore, there are chances that the price could recover above the $0.4900 and $0.5000 levels. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $0.5261 high to $0.4740 low.
However, the main resistance awaits near the $0.5050 level and the 25 SMA. More importantly, the 50% Fib retracement level of the recent decline from the $0.5261 high to $0.4740 low is at $0.5001 to act as a solid resistance.
If there is a successful close above the $0.5000 and $0.5050 resistances, the price could resume its upward move. Conversely, if buyers fail to push the price above $0.4900 and $0.5000 levels, there might be more losses in the near term. The next major support is at $0.4700, below which ripple price may decline towards the $0.4500 level.
The market data is provided by TradingView, Bitfinex.