Ripple began a sharp decline below the $ 0.4200 and $ 0.4000 support levels against the US dollar. XRP price is gaining momentum but is approaching the 100-day simple moving average and $ 0.3200.
- Ripple began a sharp drop of well over $ 0.5000 against the US dollar following the SEC threat.
- The price is now trading well below $ 0.4000 and is approaching the 100-day simple moving average.
- On the daily chart for the XRP / USD pair (data source from Kraken) there was a break under a heavily bearish channel with support near USD 0.4000.
- The pair is likely to find strong buying interest near the $ 0.3250 and $ 0.3150 levels.
Ripple’s XRP price is down 25%
Following the SEC threat, Ripple’s XRP price fell well above the $ 0.5000 level. The price has fallen over 25% and has broken many supports like $ 0.4500 and $ 0.4000.
The price was even below $ 0.4000 to move further into a bearish zone. There was a break below the 50% fib retracement level of the main upside move from the low of $ 0.2270 to the high of $ 0.7853. In addition, there was a break under a heavily bearish channel with support near USD 0.4000 on the daily chart for the XRP / USD pair.
Source: XRPUSD on TradingView.com
The XRP price is now trading well below the $ 0.3800 level. It is now nearing the USD 0.3400 support zone and the 100-day simple moving average.
The 76.4% fib retracement level of the main upward move from the low of $ 0.2270 to the high of $ 0.7853 is also near the $ 0.3580 level. The next major support is near the $ 0.3250 level followed by the $ 0.3000 level.
A closing price below the USD 0.3000 support zone could easily propel the market towards the USD 0.2650 and USD 0.2500 support levels in the coming days.
Limited upsides in XRP?
If the ripple triggers a recovery wave, it could face many hurdles starting with the broken channel trendline at $ 0.3850. The first major resistance for the bulls is near the $ 0.4000 level.
The main resistance is now forming near the $ 0.4450 level. A closing price above the $ 0.4000 and $ 0.4500 levels could pull the price out of the bearish zone. If not, losses will likely go below $ 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.
Major support levels – $ 0.3250, $ 0.3000, and $ 0.2500.
Main Resistance Levels – $ 0.3850, $ 0.4000, and $ 0.4500.