Ripple (XRP) Showing Bearish Signs: Here’s How It Could Fuel Decline in Bitcoin

 

Ripple is showing bearish signs below $0.2050 against the US Dollar. If XRP breaks the key $0.2000 support, it could also put a lot of pressure on bitcoin in the short term.

  • Ripple is struggling to settle above the $0.2040 and $0.2050 resistance levels against the US dollar.
  • The price is now trading well below the $0.2050 level and the 100 hourly simple moving average.
  • There was a break below a rising channel with support near $0.2020 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • Bitcoin price could also face an increase in selling interest if ripple dives below the $0.2000 support.

Ripple Price is Declining Steadily

In the past three days, ripple price made many attempts to clear the $0.2040 and $0.2050 resistance levels. However, XRP failed to continue higher and it recently started a fresh decline below $0.2020.

The last swing high was formed near $0.2046 before the price started declining. It broke the $0.2020 support level and the 100 hourly simple moving average. More importantly, there was a break below a rising channel with support near $0.2020 on the hourly chart of the XRP/USD pair.

Ripple Price

Ripple Price

The pair traded as low as $0.2003 and it is currently correcting higher. There was a break above the $0.2010 level. The bulls pushed the price above the 23.6% Fib retracement level of the recent decline from the $0.2046 high to $0.2003 low.

On the upside, the price is currently facing hurdles near the previous support at $0.2020 and the 100 hourly SMA. The 50% Fib retracement level of the recent decline from the $0.2046 high to $0.2003 low is also near the $0.2025 level.

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The main hurdle is still near the $0.2040 and $0.2050 resistance levels. A successful close above the $0.2050 resistance is needed to decrease the current bearish pressure.

Major Downside Break in XRP?

If ripple price fails to recover above the $0.2025 level or the $0.2050 resistance, it could continue to move down. The main support is near the $0.2000 and $0.1985 levels.

A successful bearish break and close below the $0.2000 support could spark a major decline in the near term. In the mentioned case, the price could dive towards the $0.1900 level or $0.1880.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly moving into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.

Major Support Levels – $0.2000, $0.1985 and $0.1900.

Major Resistance Levels – $0.2025, $0.2040 and $0.2050.

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