Ripple started a major decline below USD 0.4200 and USD 0.4000 support levels against the US dollar. XRP price is gaining momentum, but it is approaching the key 100-day simple moving average and USD 0.3200.
- Ripple began a steep decline of well above USD 0.5000 against the US dollar following the SEC threat.
- The price is now trading well below USD 0.4000 and is approaching the 100-day simple moving average.
- There was a break below a significant downward channel with support near USD 0.4000 on the daily chart of the XRP / USD pair (Kraken data source).
- The pair is likely to find strong buying interest near the USD 0.3250 and USD 0.3150 levels.
Ripple’s XRP price is down 25%
After the threat from SEC, Ripple’s XRP price started at a Strong decline from well above the USD 0.5000 level. The price is down more than 25% and it broke many supports such as USD 0.4500 and USD 0.4000.
The price even fell below $ 0.4000 to move up to one bearish zone. There was a break below the 50% Fib retracement level from the key upward move from the $ 0.2270 swing low to the $ 0.7853 high. Additionally, there was a breakout below a major downward channel with support at USD 0.4000 on the daily chart of the XRP / USD pair.
Source: XRPUSD on TradingView.com
XRP price is now trading well below the USD 0.3800 level. It is now approaching the USD 0.3400 support zone and the 100-day simple moving average.
The 76.4% Fib retracement level from the key upward move from the $ 0.2270 swing low to the $ 0.7853 high is also near the $ 0.3580 level. The next big support is near the USD 0.3250 level, followed by USD 0.3000.
A close below the USD 0.3000 support zone could easily drift the market towards the USD 0.2650 and USD 0.2500 support levels in the coming days.
Benefits limited in XRP?
If ripple starts a recovery wave, it could face many hurdles starting with the broken channel trend line at USD 0.3850. The first major resistance for the bulls is near the USD 0.4000 level.
The main resistance is now forming around the USD 0.4450 level. A close above the USD 0.4000 and USD 0.4500 levels could pull the price out of the bearish zone. If not, the losses will likely drop below USD 0.3500.
Daily MACD – The MACD for XRP / USD is gaining momentum in the bearish zone.
Daily RSI (Relative Strength Index) – The RSI for XRP / USD is now well below the 50 level.
Key Support Levels – USD 0.3250, USD 0.3000 and USD 0.2500.
Key Resistance Levels – USD 0.3850, USD 0.4000 and USD 0.4500.