Ripple (XRP) Daily Close Above $0.20 Would Make Case for Larger Rally
Yesterday, there was a strong rise in ripple above the $0.1880 and $0.1950 resistance levels. XRP even broke the key $0.2000 resistance area, but it failed to settle above the $0.2025 resistance area.
There were two attempts by the bulls to clear the $0.2050 barrier, but they failed. As a result, there was a downside correction from the $0.2055 swing high. The price traded below the $0.2000 support area, but it remained well above the 100 hourly simple moving average.
There was a break below the 23.6% Fib retracement level of the upward move from the $0.1765 swing low to $0.2055 monthly high. However, the $0.1900 support area acted as a strong buy zone for the bulls.
The 50% Fib retracement level of the upward move from the $0.1765 swing low to $0.2055 monthly high also provided support. Ripple is now rising again and trading above the $0.1950 level.
On the upside, there is a major hurdle forming near the $0.2000 level. There is also a key bearish trend line forming with resistance near $0.2000 on the hourly chart of the XRP/USD pair.
A successful daily close above the $0.2000 barrier could start a larger rally. The next hurdle is near $0.2050, above which the bulls are likely to aim $0.2120 and $0.2150.
Dips Remain Supported
If ripple struggles to continue above the $0.2000 resistance, it could correct lower. An initial support is near the $0.1920 level. The main support zone is near the $0.1900 and $0.1880 levels.
The 100 hourly SMA is also near the $0.1880 level to provide support. If there is a daily close below the $0.1880 support, the price could extend its decline in the near term.