Ripple’s XRP Drops Below Key Support
After numerous tests of the key $0.4 support level, Ripple’s XRP briefly dropped below it. A brief drop in the price of the largest altcoin by market cap brought the price down to a value of around $0.39 but quickly retraced back above the key support at $0.4.
Numerous tests of a level result in the progressive weakening of the level. While the first few times XRP approached $0.4 it quickly bounced, more recently it has been trading closer to the level and staying for longer. XRP continues to trade close to $0.4, and another drop below is likely.
Recent trading in XRP has been volatile with the price fluctuating between $0.4 and $0.5 on Wednesday. Momentum has been more on the side of sellers with both the MACD and RSI decreasing.
The hourly chart provides a closer look at XRP’s drop below the $0.4 support. Price quickly retraced back above to form a lower high of $0.415. It has since retested the $0.4 level but has yet failed to break back below. In the event of a rise from here, some resistance is likely to come in to play at the 50 EMA around $0.42.
The movements of the market leader Bitcoin have an important impact on the movements of altcoins including XRP. With Bitcoin currently trading close to the important $4000 level, a drop below this point would likely result in a sharp sell-off across the market. Traders in XRP should also closely monitor the price action of Bitcoin as it trades close to an important level.
- XRP briefly drops below support at $0.4 after numerous tests. Price action currently trades close to this level and may return below.
- In the event of a rise, resistance is likely to come in to play around the hourly 50 EMA at $0.42.
- Traders in XRP are advised to also monitor closely the movements of market leader Bitcoin which trades close to the important $4000 level. A move below this level would likely result in a sharp sell-off across altcoins.
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