Ripple price analysis: XRP/USD must clear $0.55 resistance for a breakout
|- Ripple trimmed gains from $0.57 but bulls protected $0.50 support.
- The 50 SMA is holding the price; other key support areas at $0.52 and $0.50.
Ripple experienced a slight correction from the highs around $0.57. XRP/USD continued in the downtrend smashing below the short-term support at $0.54. Moreover, there was an extended drop past the next support target at $0.52 as well as the 100 simple moving average on the hourly time frame chart. However, the buyers found their bearing around $0.50 supported by the hourly 50 simple moving average. The price consolidated the losses around this level prior to a pullback above the broken support at $0.52.
There was a retracement above the next support turned resistance at $0.54. Ripple made it above the 23.6% Fib retracement level with the last swing high of $0.574 and a swing low of $0.441. Unfortunately, the upside was capped at $0.555 unable to recoil towards $0.56.
At the time of press, Ripple has changed direction south and broken below the bullish trendline on the hourly chart. The 50SMA is the immediate short-term support but it is likely that the price will drop further down to retest the support at $0.52. If XRP/USD breaks this support line, it could open the door for more declines heading to $0.50.
The fast stochastic oscillator has dropped sharply into the oversold signals to signal that bears are increasing their presence in the market. Looking at the chart, XRP/USD likely movement is to the south. However, if the trend can reverse and the price breaks above $0.550, Ripple could be primed for more gains.
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