Ripple is declining from the $0.2900 resistance area against the US Dollar. XRP price broke $0.2700 and it could continue to correct lower towards the $0.2600 support.
- Ripple price started a downside correction after it failed to test $0.3000 against the US dollar.
- There was a break below the $0.2800 and $0.2700 levels.
- There is a key declining channel forming with resistance near $0.2735 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The price could continue to move down towards $0.2600 or $0.2540 in the near term.
Ripple Price Remains At Risk
After a decent upward move, ripple faced a strong resistance near the $0.2880-$0.2900 area. Moreover, XRP price failed to test the $0.3000 resistance area and formed a short term top near the $0.2891 level.
As a result, there was a downside correction below the $0.2800 level. Besides, the price traded below the 50% Fib retracement level of the last leg from the $0.2635 low to $0.2891 high.
The price is now trading below $0.2750 and the 100 hourly simple moving average. An immediate support is seen near the $0.2695 level. It coincides with the 76.4% Fib retracement level of the last leg from the $0.2635 low to $0.2891 high.
More importantly, there is a key declining channel forming with resistance near $0.2735 on the hourly chart of the XRP/USD pair. Therefore, there is a risk of more losses in ripple below the $0.2695 level.
The next support is seen near the last swing low of $0.2635. If the price fails to stay above the $0.2635, it could continue to move down towards the $0.2600 support area.
Any further losses may perhaps lead the price towards the $0.2575 support area. It coincides with the 1.236 Fib extension level of the last leg from the $0.2635 low to $0.2891 high.
On the upside, there are a few key hurdles forming near the $0.2735 and $0.2740 levels for ripple. The first key resistance is seen near the $0.2800 area and the 100 hourly simple moving average.
To move into a positive zone, the bulls need to push the price above $0.2800. The main hurdle is still near the $0.2880-$0.2900 area, above which ripple price might rise towards the $0.3000 resistance.