The Ripple price has been in a good momentum lately. Currently, Ripple is around 10% in the green zone as it broke the key $0.1650 resistance zone against the US dollar. Also, XRP rallied 10% just when the market reversed which is how it remains in a nice uptrend and could continue to rise towards $0.20.
There is a short term contracting triangle forming in the XRP news today, showing that the price of the third largest altcoin by market cap may soon lead the gains in the rest of the market. The price of XRP could correct a few points in the near term, but the dips are also in the play, especially near $0.1700.
It all started yesterday, when the chances of a strong rally surfaced for Ripple (XRP) above the $0.1640 and $0.1650 resistance levels. This is how XRP rallied and broke the $0.1720 resistance shortly afterwards, gaining pace above the 100 hourly simple moving average . The upward move continued and XRP rallied more, trading to a new weekly high at $0.1808.
Since then, XRP reversed and the price is now correcting lower and trading below $0.1780. There was a break below the 23.6% Fib retracement level of the upward move from a $0.1605 low to a $0.1808 high.
It seems like there is a short term contracting triangle that is forming with resistance near $0.1780 on the hourly chart of XRP/USD. If we see a new upside break in the altcoin news today, the XRP price is likely to continue higher above $0.1800.
In the stated case, the price of XRP is likely to surge above the $0.1808 high and $0.1820. The next major resistance is positioned near $0.1880. However, for analysts a reversal is also in the play – one which may bring XRP back to the $0.1600 region.
Anyways, the first major support is near the $0.1705 area and close to the 50% Fib retracement level of the upward move from the $0.1605 low to the $0.1808 high. The next major support is near the $0.1650 area (which is the recent breakout resistance) where the bulls are likely to take a strong stand.
The good news is that XRP rallied at the right time. The technical indicators of the coin are as following:
- Hourly MACD – The MACD for XRP/USD is currently gaining momentum in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 70 level and it is in the overbought zone.
- Major Support Levels – $0.1750, $0.1705 and $0.1650.
- Major Resistance Levels – $0.1780, $0.1800 and $0.1850.
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