Ripple price dropped significantly after it broke the $0.4620 support. XRP/USD is still in a downtrend and it could decline below the recent $0.4081 low.
- Ripple price faced an increased selling pressure and declined below $0.4200.
- XRP/USD is currently forming a bearish continuation pattern with resistance at $0.4260 on the 30-minute chart.
- The price is likely to extend losses below the $0.4080 and $0.4000 support levels.
Ripple Price Analysis
Yesterday, we discussed that ripple price is likely to face a lot of resistance near the $0.4750 and $0.4800 levels. The price failed to break the $0.4750 resistance and broke the key $0.4620 support zone.
Click to Enlarge Chart
Looking at the 30-minute chart of XRP/USD, the pair declined heavily and was down more than 10% below $0.4200. It traded towards the $0.4000 level and formed a low at $0.4081.
The price is currently recovering towards $0.4250, but remains well below the 25 simple moving average (30-minute). There was a recovery above the 23.6% Fib retracement level of the recent slide from the $0.4679 high to $0.4081 low.
However, the upside move was capped by the $0.4300 level. More importantly, it seems like there is a bearish continuation pattern in place with resistance at $0.4260 on the same chart. If the price breaks the channel support and $0.4081 low, there could be further declines.
An immediate support is at $0.4000, below which sellers might push the price towards the $0.3850 and $0.3750 support levels. On the other hand, if there is an extended correction above $0.4260, the price will most likely correct towards $0.4380.
The $0.4380-0.4400 resistance zone is very important, since it was a support earlier and now it coincides with the 50% Fib retracement level of the recent slide from the $0.4679 high to $0.4081 low.
Overall, ripple price is in a clear downtrend below the 0.4400 pivot level. A break below the $0.4000 support could provide more strength to sellers. In the mentioned case, it would be hard for buyers to defend $0.3850.
The market data is provided by TradingView, Bitfinex.