Ripple price declined recently and broke the $0.3750 support zone. XRP is now trading near another support at $0.3660, below which there could be more losses.
- Ripple price declined after trading to a new weekly high at $0.3860.
- There is a major bullish trend line formed with support at $0.3685 on the 30-minute chart.
- XRP must stay above $0.3660 to start a fresh upward move in the near term.
Ripple Price Analysis
After testing the $0.3750 support area, ripple price bounced back above the $0.3800 resistance. XRP broke the last swing high at $0.3849, traded to a new weekly high at $0.3860, and later started a fresh downside correction.
Click to Enlarge Chart
Looking at the 30-minute chart of XRP/USD, the pair traded below the $0.3800 and $0.3750 support levels. There was also a close below the $0.3750 support and the 25 simple moving average (30-minute).
During the recent decline, the price moved below the 50% Fib retracement level of the last upward move from the $0.3540 swing low to $0.3860 high. However, the price tested a major support area near $0.3660, which prevented additional losses.
Besides, the 61.8% Fib retracement level of the last upward move from the $0.3540 swing low to $0.3860 high also acted as a support. At the outset, there is a major bullish trend line formed with support at $0.3685 on the same chart.
Therefore, the trend line and the $0.3660 support are likely to play an important role in the coming sessions. If there is a break below the $0.3660 support, the price will most likely extend losses. The next key support is at $0.3585, followed by $0.3540.
On the other hand, if the $0.3660 supports holds, the price may bounce back. On the upside, an initial resistance is at $0.3750 and the 25 simple moving average (30-minute). Above $0.3750, the price may test the $0.3880 and $0.3950 resistances.
Overall, ripple price is preparing for the next move either above $0.3750 or below $0.3660 in the near term.
The market data is provided by TradingView, Bitfinex.