Ripple (XRP) Is Primed For a Rally And Only 1 Thing is Holding it Back
There was a close above the $0.1850 level and the 100 hourly simple moving average. However, the price seems to be facing a strong resistance near the $0.1890 and $0.1900 levels. The 50% Fib retracement level of the last key decline drop from the $0.1966 high to $0.1810 swing low is also acting as a hurdle.
Ripple price is also struggling to settle above the 100 hourly simple moving average (currently at $0.1880). More importantly, there is a major contracting triangle forming with resistance near $0.1890 on the hourly chart of the XRP/USD pair.
If the pair breaks the triangle resistance and $0.1900, it could test the 61.8% Fib retracement level of the last key decline drop from the $0.1966 high to $0.1810 swing low.
To start a strong upward move, the bulls need to surpass the $0.1920 resistance level. If they succeed, the price is likely to accelerate higher towards the $0.1980 and $0.2000 resistance levels in the near term.
If ripple struggle to gain momentum above the 100 hourly SMA or the $0.1900 resistance, the price might start a fresh decline below the $0.1860 level.
An initial support on the downside is near a connecting bullish trend line at $0.1850. A clear break below the $0.1850 support level might start a substantial decline towards the $0.1810 and $0.1780 levels.