Ripple (XRP) Breaking This Single Level Will Spark a Strong Rebound
Yesterday, we saw a sharp decline in ripple below the $0.2200 and $0.2050 support levels. XRP price even dived below the key $0.2000 support level and settled well below the 100 hourly simple moving average.
A new monthly low is formed near the $0.1981 level and the price is currently correcting higher. It is back above the $0.2000 level, but facing a lot of hurdles.
An initial resistance is near the 23.6% Fib retracement level of the recent drop from the $0.2450 high to $0.1981 low. More importantly, there is a key bearish trend line forming with resistance near $0.2085 on the hourly chart of the XRP/USD pair.
The next major resistance is near the $0.2215 level since it is close to the 50% Fib retracement level of the recent drop from the $0.2450 high to $0.1981 low. Any further gains will most likely lead the price towards the $0.2280 resistance level and the 100 hourly SMA. An intermediate resistance is near the $0.2250 level.
If ripple fails to correct above the $0.2100 and $0.2150 resistance levels, it is likely to resume its decline. An initial support is near the key $0.2000 pivot area.
A clear break and close below the $0.2000 support area may perhaps spark a sharp decline. The next support is near the $0.1981 low, below which there is a risk of a drop towards the $0.1920 level in the near term.