Article Source: WeChat Official Account Miao Jie Trading Diary
XRP price started a new decline after breaking below $2.080. The current price action is weak, facing resistance near the $2.040 level.
XRP price started a new decline after breaking below the $2.050 zone.
The price is currently below $2.050 and the 100-hour Simple Moving Average.
A descending trend line is forming on the XRP/USD hourly chart with resistance near $2.040 (data source: Kraken).
The pair could extend its decline if it breaks below $2.00.
XRP Price Hovers Near Resistance
XRP price attempted a recovery wave above $2.150 but failed to continue higher, unlike Bitcoin and Ethereum. Subsequently, the price started a new decline, breaking below $2.080 and $2.050.
The price broke below the $2.00 support and formed a low near $1.993 before starting a recovery correction. There was a move above the 23.6% Fib retracement level of the downward move from the $2.177 high to the $1.993 low.
However, bears were active near $2.040 and $2.050. A descending trend line is also forming with resistance near $2.040 on the hourly chart of XRP/USD. The price is now below $2.050 and the 100-hour Simple Moving Average.
If there is another increase, the price might face resistance near $2.040. The first major resistance is near $2.080 or the 50% Fib retracement level of the downward move from the $2.177 high to the $1.993 low.
A close above $2.080 could push the price toward $2.012. The next resistance sits at $2.150. A clear move above the $2.150 resistance might send the price toward the $2.1850 resistance. Further gains could lead the price toward the $2.220 resistance. The next major resistance for the bulls could be near $2.250.
Another Decline?
If XRP fails to clear the $2.040 resistance, it could start another decline. Initial support on the downside is near $2.00. The next major support is near $1.9880.
If the price breaks below the $1.9880 level and closes below it, it could continue to move down toward $1.920. The next major support is near $1.880, below which the price might test $1.820.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $2.00 and $1.9850.
Major Resistance Levels – $2.040 and $2.080.
