Ripple (XRP) Takes a Bit Hit, But This Variable Can Trigger A New Rally
In the past two days, there was a strong surge in bitcoin, Ethereum and ripple. XRP formed a strong support base above $0.2000 and rallied above the $0.2120 and $0.2200 resistance levels.
It even climbed above $0.2320 and settled well above the 100 hourly simple moving average. Finally, the price traded to a new monthly high at $0.2358 and recently started a sharp downside correction.
There was a break below the $0.2200 support zone. Ripple even spiked below the $0.2100 support zone, but it remained well bid near the 100 hourly simple moving average. A low is formed near $0.2085 and the price is currently rising.
It is trading above the $0.2120 level, and the 23.6% Fib retracement level of the recent decline from the $0.2358 high to $0.2085 low. There is also a major bullish trend line forming with support near $0.2125 on the hourly chart of the XRP/USD pair.
On the upside, an initial resistance is seen near the $0.2185 level. The first major resistance is near the $0.2220 level since it is close to the 50% Fib retracement level of the recent decline from the $0.2358 high to $0.2085 low.
To start a fresh increase, the price must gain momentum above the $0.2185 and $0.2220 resistance levels. The next major hurdle is near the $0.2300 and $0.2350 levels.
Ripple is clearly trading above a major support zone at $0.2100 and the 100 hourly SMA. If it fails to stay above $0.2100, there is a risk of more downsides.
The next major support is near the $0.2050 level, below which the bears are likely to aim a test of the key $0.2000 support zone in the coming sessions.