Ripple (XRP) Just Signaled “Sell” And It’s Vulnerable to a Sharp Decline
In the past few days, ripple bears made a few attempts to push the price below the $0.2000 and $0.1980 support levels, but they failed. XRP price formed a high near the $0.2099 level and recently started a fresh decline.
There was a break below the $0.2050 pivot level. The price even declined below the 50% Fib retracement level of the recent rise from the $0.1991 low to $0.2099 high.
It seems like ripple bears are in control and they are attempting a bearish break below the $0.2000 and $0.1980 support levels. The price is currently testing the $0.1990 area and there is a major declining channel forming with resistance near $0.2070 on the hourly chart of the XRP/USD pair.
An initial support is near the $0.1965 level. It coincides with the 1.236 Fib extension level of the recent rise from the $0.1991 low to $0.2099 high.
The next key support is near the $0.1950 level, below which the price could test the $0.1920 level in the near term. Any further losses may perhaps lead the price towards the $0.1840 support level.
There are also chances of another rejection near the $0.1980 support area. If ripple price stays above the $0.1980 support, it could start a short term upside correction.
On the upside, an initial resistance is near the $0.2050 level. The first key resistance is near the $0.2080 level and the channel upper trend line. A successful close above the channel resistance and a follow through above the $0.2100 resistance is needed to start a strong recovery wave in the coming sessions.