Charted: Why Ripple (XRP) Could Outperform Bitcoin And Ethereum In Short-Term
Ripple remained stable above $0.5000, while there were heavy losses in bitcoin and ethereum against the US Dollar. XRP price is likely to start a fresh increase above $0.5500.
- Ripple failed to clear a major hurdle at $0.6500 and corrected lower against the US dollar.
- The price is now trading near the $0.5200 support and the 100 simple moving average (4-hours).
- There is a major bullish trend line with support at $0.5150 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair could start a fresh increase as long as there is no close below $0.5000.
Ripple’s XRP Price is Holding Key Support
Recently, there was a sharp upward move in ripple’s XRP price above the $0.5200 resistance zone. The price surged above the $0.6000 level and it settled above the 100 simple moving average (4-hours).
However, the price failed to clear a major hurdle near the $0.6500 barrier. It topped near the $0.6501 level and it started a fresh decline. There was a sharp decline in bitcoin and ethereum, but XRP remained stable above $0.5000.
There was a break below the 50% Fib retracement level of the retracement level of the upward move from the $0.4330 swing low to $0.6500 swing high.
Source: XRPUSD on TradingView.com
The price is now trading near the $0.5200 support and the 100 simple moving average (4-hours). There is also a major bullish trend line with support at $0.5150 on the 4-hours chart of the XRP/USD pair. The trend line is close to the 61.8% Fib retracement level of the retracement level of the upward move from the $0.4330 swing low to $0.6500 swing high.
On the upside, the price is likely to climb above the $0.5350 and $0.5400 levels. The main resistance sits at $0.5500, above which the price might rally towards $0.6500.
Dips Limited in XRP?
If ripple fails to continue higher above $0.5500, it could correct lower. An initial support on the downside is near the $0.5150 level and the trend line.
A downside break below the $0.5150 support zone could lead the price towards the $0.5000 zone. Any more losses may possibly lead the price towards $0.4400.
4-Hours MACD – The MACD for XRP/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now just below the 50 level.
Major Support Levels – $0.5150, $0.5000 and $0.4500.
Major Resistance Levels – $0.5400, $0.5500 and $0.6000.
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