Ripple surged higher and climbed above the .3200 resistance area against the US Dollar. However, XRP price is now facing a strong resistance near the .3400-.3500 area.
Ripple price surged to a new 2020 high at .3399 before correcting lower against the US dollar.
The price is now consolidating gains above the .3150 support area.
There is a major contracting triangle forming with resistance near .3310 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price could either surge above .3400 or it might start a significant correction below .3000.
Ripple Price Facing Key Hurdles
In the past two days, ripple saw a sharp increase in buying interest above the .2900 resistance. As a result, XRP rallied above the .3000 and .3200 resistance levels.
Moreover, there was a close above the .3200 level and the 100 hourly simple moving average. Finally, the price tested a major resistance area near .3400-.3500 (as discussed in yesterday’s post using the daily chart).
Ripple faced a strong selling interest near .3400 and a new 2020 high was formed near .3399. Recently, there was a downside correction below the .3300 area. The price even broke the 23.6% Fib retracement level of the upward move from the .2998 low to .3399 high.
There were a couple of spikes below .3200, but the price remained well bid above .3200. More importantly, there is a major contracting triangle forming with resistance near .3310 on the hourly chart of the XRP/USD pair.
Ripple Price
Therefore, ripple seems to be facing a lot of hurdles on the upside, starting with .3310 and up to .3500. A successful daily close above the .3500 level could initiate a long term uptrend towards .4000 or even .5000.
Key Uptrend Supports
The first key support is near the triangle lower trend line at .3200. It also coincides with the 50% Fib retracement level of the upward move from the .2998 low to .3399 high.
If the price fails to stay above the .3200 support, it could start a downside extension. In the mentioned case, the first target for the bears could be .3080.
However, the main support is near the .3000 level, below which there is a risk of a drop towards the .2920 support or the 100 hourly SMA.
Technical Indicators
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 – .3200, .3080 and .3000.
Major Resistance Levels – .3310, .3400 and .3500.
NewsBTC