The Ripple XRP news yesterday were quite shocking for many investors. The investors saw the price of Ripple’s token going to as low as $0.2500 and recording a steep fall of more than 10% overnight. Currently, the XRP price shock is not as strong as it used to be and XRP is rebounding to a new level at $0.2732.
It all started yesterday when we saw a downside correction which was quite minor – bringing the Ripple (XRP) price from $0.3000 to $0.2850 in a couple of hours. However, XRP managed to hold the key support at $0.2850 and declined heavily in the last three sessions.
During this slide, there was a continuous break below a few important supports near $0.2800 and $0.2720. Moreover, the price of XRP settled below $0.2800 which is when the XRP price shock started. This opened the doors for more downsides below the $0.2650 support line.
Finally, the price of XRP spiked below the $0.2550 and $0.2500 support levels and was featured among the losers in the cryptonews. Despite the fact that the price action had $0.2500 area as a strong support, XRP managed to drop quickly and the only good thing was the fact that it recovered aggressively and climbed back above the $0.2600 level.
Additionally, there was a break above the 50% Fib retracement level of the recent decline from a high of $0.2908 to a low of $0.2470. This was the XRP price shock at its finest – and what led many investors to believe that the XRP/USD pair is losing momentum quickly.
Right now, if the price fails to correct above $0.2800, there is a risk of another slide below the $0.2650 support line. The next support is near the $0.2570 and $0.2550 levels, accordingly. When looking at the chart, the XRP price is clearly retreating after testing the main $0.2500 support area. There are many positive signs visible on the chart, but the bulls could find it difficult to push the price back above $0.2750 and $0.2800.
The technical indicators show the following:
- Hourly MACD – The MACD for XRP/USD is right now moving nicely in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is moving higher and is currently near the 40 level.
- Major Support Levels now at $0.2650, $0.2550 and $0.2500.
- Major Resistance Levels now at $0.2750, $0.2800 and $0.2850.
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