Ripple (XRP) Takes A Bit Hit But Here Is Why It Could Correct In Short-Term
After ripple failed to clear the $0.2850 resistance, it started a fresh decline. XRP price traded below many supports, including $0.2800, $0.2740, and the 100 hourly simple moving average.
During the decline, there was a break below a key bullish trend line at $0.2765 and a bearish continuation pattern with support near $0.2720 on the hourly chart of the XRP/USD pair.
It opened the doors for more losses and the price traded close to the $0.2650 support area. A swing low is formed near $0.2638 and the price is currently consolidating losses. Ripple is trading near the 23.6% Fib retracement level of the recent decline from the $0.2852 high to $0.2638 low.
On the upside, there are a few key hurdles waiting near the $0.2710 level. The next key resistance on the upside is near the $0.2740 level (the previous support) and the 100 hourly simple moving average.
Besides, the 50% Fib retracement level of the recent decline from the $0.2852 high to $0.2638 low is also near the $0.2745 level to act as a resistance.
On the downside, there is a major support forming near the $0.2650 area. As long as the price is trading above $0.2650, there are chances of a short term correction. However, the bulls are likely to struggle near the $0.2740 level and the 100 hourly SMA.
If ripple fails to correct above the $0.2710 and $0.2740 resistance levels, it could extend its decline. The main support is near the $0.2650 level.