Ripple (XRP) Lack of Strength Suggests False Rally or Just Correction
In the past three sessions, ripple gained strength above the $0.1400 and $0.1450 resistance levels. XRP price surged above the $0.1500 resistance level to move into a short term positive zone.
Besides, there was a sharp move above the $0.1650 resistance and the price settled above the 100 hourly simple moving average. A new weekly high was formed near the $0.1720 resistance area.
Ripple is currently correcting lower and trading below the $0.1650 level. There was a break below the 23.6% Fib retracement level of the recent rise from the $0.1407 low to $0.1734 high. On the downside, an initial support is near the $0.1600 level.
The first major support is near the $0.1580 level. There is also a key bullish trend line forming with support near $0.1570 on the hourly chart of the XRP/USD pair.
The trend line support is close to the 50% Fib retracement level of the recent rise from the $0.1407 low to $0.1734 high. Therefore, dips towards the $0.1600 and $0.1580 support levels are likely to find a decent buying interest.
Weak Price Action
Despite the recent rally, the current price is weak and suggests ripple might fail to start a fresh increase above the $0.1700 level. As stated, the main support area is now near the $0.1580 level.
If the bulls fail to keep the price above the $0.1580 and $0.1550 levels, there is a risk of a larger decline in the coming sessions. The next major support is near the $0.1450 level. Conversely, the bulls are likely to lead the price above the $0.1720 and $0.1780 levels.