Ripple (XRP) Just Rejected Key Resistance And Its Exposed To Fresh Decline
Yesterday, we discussed a couple of important hurdles for ripple near the $0.2150 area. XRP price started a decent upward move from the $0.1978 swing low and climbed above the $0.2000 and $0.2050 levels.
It managed to climb above the 23.6% Fib retracement level of the key decline from the $0.2450 high to $0.1978 low. The bulls were able to push the price above the $0.2100 resistance area, but it failed to gain pace above the $0.2140 and $0.2150 resistance levels.
The price action suggests that ripple was rejected near the $0.2150 resistance. It is currently declining and trading below the $0.2125 level. Moreover, there is a short term ascending channel forming with support near $0.2115 on the hourly chart of the XRP/USD pair.
If the pair fails to stay above the $0.2115 and $0.2100 support levels, it is likely to resume its decline. An initial support below $0.2100 is near the $0.2050 level. Any further losses could start a sharp and steady decline towards the $0.1980 level in the near term.
Chances of a Strong Recovery
On the upside, ripple is clearly facing a major hurdle near the $0.2150 resistance level. The next resistance is seen near the $0.2200 level since it is close to the 100 hourly simple moving average.
The 50% Fib retracement level of the key decline from the $0.2450 high to $0.1978 low is also near the $0.2215 level to act as a key resistance. To start a fresh increase and a strong recovery, the bulls need to surpass the $0.2150 hurdle and then gain pace above the $0.2200 pivot level.