Ripple price rallied this week and broke key resistances at $0.4750 and $0.4950 against the US Dollar. XRP/USD remains well bid on the downside around $0.5000.
Key Talking Points
- Ripple price traded above the $0.5650 level recently before correcting lower against the US Dollar.
- XRP/USD is about to settle below a triangle support at $0.5290 on the 2-hours chart (Data feed via Bitstamp).
- XRP price is likely to extend the current correction towards the $0.5060 or $0.4920 support.
Ripple Price Forecast
This week, there was a solid bullish wave from the $0.4600 swing low in ripple price against the US Dollar. The XRP/USD pair traded higher and broke the $0.4750 and $0.4950 resistance levels.
Looking at the chart, the price gained momentum above the $0.5000 level and the 100 simple moving average (2-hours). Buyers took control and pushed the price above the $0.5200 and $0.5500 levels. A new monthly high was formed at $0.5655 before sellers appeared.
Later, the price started a downside correction and traded below the $0.5450 level and the 23.6% Fib retracement level of the last leg from the $0.4470 low to $0.5655 high. More importantly, the price traded in a contracting triangle for a few hours and it recently declined below the $0.5350 support.
Besides, the pair is about to settle below a triangle support at $0.5290 on the same chart. If there is a 2-hour close below $0.4290, the price may perhaps decline further towards the $0.5060 support.
The $0.5060 is a decent support since it is the 50% Fib retracement level of the last leg from the $0.4470 low to $0.5655 high. Below $0.5060, the next major support is near the $0.4750 level, which acted as a resistance on many occasions earlier and now it coincides with the 100 simple moving average (2-hours).
Therefore, dips from the current levels in ripple price remain well supported near the $0.5060 or $0.4750 levels. The overall market sentiment is positive and buyers are likely to take control again once the current correction is complete below $0.5200.