Charted: Ripple (XRP) Consolidates Gains, Why Rally Isn’t Over Yet
Ripple extended its rally above the $1.200 resistance zone before correcting lower against the US Dollar. XRP price is now consolidating gains and it is likely to rally again above $1.400.
- Ripple rallied towards $1.50 before correcting lower against the US dollar.
- The price is now trading well above $1.1500 and the 100 simple moving average (4-hours).
- There is a key contracting triangle forming with support near $1.3100 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair is likely to start a fresh rally if it clears the $1.400 resistance zone.
Ripple’s XRP Price Remains Well Supported
The price even rallied above $1.400 before the bears appeared near $1.485. A high was formed near $1.481 and recently there was a downside correction. The bears were able to push the price below the $1.420 and $1.400 support levels.
There was a break below the 23.6% Fib retracement level of the upward move from the $0.8598 swing low to $1.481 high. However, the price is still trading well above $1.250 and the 100 simple moving average (4-hours).
Source: XRPUSD on TradingView.com
There is also a key contracting triangle forming with support near $1.310 on the 4-hours chart of the XRP/USD pair. The pair is placed nicely above the 50% Fib retracement level of the upward move from the $0.8598 swing low to $1.481 high.
On the upside, the $1.3800 level is an immediate resistance. The next major resistance is near the $1.400 level. A successful close above the $1.400 level is likely to start a fresh rally towards $1.500 and $1.650.
Dips Limited in XRP?
If ripple fails to clear the $1.4000 resistance or $1.450, it could correct further lower. An initial support on the downside is near the $1.3100 level and the trend line.
The next major support is near the $1.2500 level. Any more losses might call for a drop towards the $1.120 support zone in the coming sessions.
4-Hours MACD – The MACD for XRP/USD is slowly losing pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is still well above the 50 level.
Major Support Levels – $1.3100, $1.2500 and $1.1200.
Major Resistance Levels – $1.400, $1.450 and $1.500.