The XRP price rose more than 20% and climbed above $0.70 against the US dollar. The price is correcting gains, but the bulls could be active again around $0.650.
- XRP started a strong rise above the USD 0.680 resistance.
- The price is now trading above USD 0.685 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.6580 on the 4-hour chart of the XRP/USD pair (Kraken data source).
- The pair could correct further lower, but the bulls could remain active around $0.6500.
XRP Price Begins New Rally
After a decent rise from the $0.532 zone, XRP gained bullish momentum. There was a strong move above the USD 0.580 and USD 0.585 resistance levels. It even outperformed Bitcoin and Ethereum.
The bulls even pumped above the USD 0.650 resistance zone. Finally, a new multi-week high was formed near $0.7329 and the price recently started a downward correction. There was a move below the USD 0.620 level. The price even fell below the 23.6% Fib retracement level of the upward move from the $0.5866 swing low to the $0.7329 high.
XRP is now trading above USD 0.665 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support near $0.6580 on the 4-hour chart of the XRP/USD pair. The trendline is close to the 50% Fib retracement level of the upward move from the $0.5866 swing low to the $0.7329 high.
On the upside, immediate resistance is around the $0.695 level. The first major resistance is at $0.700. A close above the USD 0.700 level could send the price towards the USD 0.728 resistance.
Source: XRPUSD on TradingView.com
If the bulls continue to act above the USD 0.728 resistance level, a rally towards the USD 0.750 resistance could take place. Any further gains could send XRP towards the USD 0.785 resistance.
Are dips limited?
If XRP fails to break the USD 0.700 resistance zone, it could continue to decline. The initial downside support is near the $0.660 zone and the trendline.
The next major support is at USD 0.650. If there is a downside break and a close below the USD 0.650 level, the XRP price may accelerate lower. In the said case, the price could retest the USD 0.620 support zone.
Technical indicators
4-hour MACD – The MACD for XRP/USD is now losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major support levels – USD 0.660, USD 0.650 and USD 0.620.
Major resistance levels – $0.700, $0.728 and $0.750.