XRP Price Stabilizes After Flash Crash, Market Watches Closely

[Ben Graham]

XRP price extended losses and traded dived $2.00. The price is now consolidating and might decline further if it remains below $2.00.

• XRP price started a fresh decline below the $2.00 zone.
• The price is now trading below $2.00 and the 100-hourly Simple Moving Average.
• There was a break below a contracting triangle with support at $2.050 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could continue to move down if it stays below $2.00.

XRP Price Dips Sharply

XRP price failed to stay above $2.10 and started a fresh decline, like Bitcoin and Ethereum. The price declined below $2.020 and $2.00 to enter a short-term bearish zone.

There was a break below a contracting triangle with support at $2.050 on the hourly chart of the XRP/USD pair. The price even spiked below $1.880. A low was formed at $1.847, and the price is now consolidating losses. There was a recovery wave above $1.920. The price even tested the 50% Fib retracement level of the downward move from the $2.065 swing high to the $1.847 low, but the bears remained active.

The price is now trading below $2.00 and the 100-hourly Simple Moving Average. If there is a fresh upward move, the price might face resistance near the $1.980 level and the 61.8% Fib retracement level of the downward move from the $2.065 swing high to the $1.847 low.

The first major resistance is near the $2.00 level. A close above $2.00 could send the price to $2.065. The next hurdle sits at $2.10. A clear move above the $2.10 resistance might send the price toward the $2.120 resistance. Any more gains might send the price toward the $2.150 resistance. The next major hurdle for the bulls might be near $2.20.

More Losses?

If XRP fails to clear the $2.00 resistance zone, it could start a fresh decline. Initial support on the downside is near the $1.9320 level. The next major support is near the $1.90 level.

If there is a downside break and a close below the $1.90 level, the price might continue to decline toward $1.850. The next major support sits near the $1.820 zone, below which the price could continue lower toward $1.80.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $1.920 and $1.90.

Major Resistance Levels – $1.980 and $2.00.