Ripple surged higher and climbed above the $0.3200 resistance area against the US Dollar. However, XRP price is now facing a strong resistance near the $0.3400-$0.3500 area.
Ripple price surged to a new 2020 high at $0.3399 before correcting lower against the US dollar.
The price is now consolidating gains above the $0.3150 support area.
There is a major contracting triangle forming with resistance near $0.3310 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price could either surge above $0.3400 or it might start a significant correction below $0.3000.
Ripple Price Facing Key Hurdles
In the past two days, ripple saw a sharp increase in buying interest above the $0.2900 resistance. As a result, XRP rallied above the $0.3000 and $0.3200 resistance levels.
Moreover, there was a close above the $0.3200 level and the 100 hourly simple moving average. Finally, the price tested a major resistance area near $0.3400-$0.3500 (as discussed in yesterday’s post using the daily chart).
Ripple faced a strong selling interest near $0.3400 and a new 2020 high was formed near $0.3399. Recently, there was a downside correction below the $0.3300 area. The price even broke the 23.6% Fib retracement level of the upward move from the $0.2998 low to $0.3399 high.
There were a couple of spikes below $0.3200, but the price remained well bid above $0.3200. More importantly, there is a major contracting triangle forming with resistance near $0.3310 on the hourly chart of the XRP/USD pair.
Therefore, ripple seems to be facing a lot of hurdles on the upside, starting with $0.3310 and up to $0.3500. A successful daily close above the $0.3500 level could initiate a long term uptrend towards $0.4000 or even $0.5000.
Key Uptrend Supports
The first key support is near the triangle lower trend line at $0.3200. It also coincides with the 50% Fib retracement level of the upward move from the $0.2998 low to $0.3399 high.
If the price fails to stay above the $0.3200 support, it could start a downside extension. In the mentioned case, the first target for the bears could be $0.3080.
However, the main support is near the $0.3000 level, below which there is a risk of a drop towards the $0.2920 support or the 100 hourly SMA.
Hourly MACD – The MACD for XRP/USD is slowly moving in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is still above the 50 level, with positive signs.
Major Support Levels – $0.3200, $0.3080 and $0.3000.
Major Resistance Levels – $0.3310, $0.3400 and $0.3500.