Ripple (XRP) Bulls Hesitates But Further Gains Above $0.24 Seem Likely
Yesterday, we discussed a possible a double bottom pattern for ripple near the $0.2240 level. XRP price remained well bid above the $0.2240 and $0.2250 levels and recently started a decent increase.
The price is up around 2% and it surpassed the $0.2300 resistance level. Besides, there was a break above a major bearish trend line with resistance near $0.2240 on the hourly chart of the XRP/USD pair.
The pair is now trading well above the $0.2320 level and the 100 hourly simple moving average. A high is formed near $0.2417 and ripple price is currently correcting lower. It traded below the $0.2400 level, plus the 23.6% Fib retracement level of the upward move from the $0.2238 low to $0.2417 high.
An initial support on the downside is near the $0.2345 and the 100 hourly simple moving average. The next key support is visible near the $0.2330 level since it is close to the 50% Fib retracement level of the upward move from the $0.2238 low to $0.2417 high.
To start a strong increase, the bulls need to gain momentum above the $0.2425 resistance level. A successful break above $0.2325 and $0.2480 could open the doors for a strong rally. The next key resistance is near the $0.2580 and $0.2600 levels.
If ripple struggles to continue above the $0.2425 and $0.2480 resistance levels, there are chances of a fresh decline. A clear break below $0.2330 and the 100 hourly SMA might put pressure on the bulls.
On the downside, the main support is near $0.2300, below which the price may perhaps break the $0.2240 double bottom support and extend its decline towards $0.2200.