Ripple price is correcting lower from the $0.7985 swing high against the US Dollar. XRP/USD could correct further towards $0.4000 or $0.3500 before an upside drift.
- Ripple price is currently correcting lower from the $0.7985 swing high.
- XRP/USD is following a declining channel with resistance at $0.5010 on the 4-hours chart.
- XRP price is likely to dip a few more points before it may recover above $0.6000.
Ripple price analysis
During the past few days, there was a bearish reaction below the $0.6000 support in ripple price against the US Dollar. XRP/USD declined recently and traded below the $0.5000 support level, and it is currently following a bearish structure.
The 4-hour chart indicates that the price started an ABC correction wave from the $0.7985 swing high. The first wave completed at $0.4365 and the second wave ended near the $0.6170 level.
During the second wave, the price moved above the 38.2% Fib retracement level of the last drop from the $0.7985 high to $0.4365 low. However, the upside move was protected by the $0.6000-0.6150 resistance zone.
The price started the third wave of the ABC correction and declined below the $0.5500 support plus the 100 simple moving average (4-hours). It seems like the price was rejected from the 50% Fib retracement level of the last drop from the $0.7985 high to $0.4365 low.
Ideally, the third wave could end below the first wave low, which means there is a chance of a downside break below the $0.4365 low. At the outset, the price is following a declining channel with resistance at $0.5010 on the same chart.
There are two possible scenarios, first – the price breaks the channel resistance resumes it uptrend towards the $0.5500 and $0.6000 resistance levels. Second, the price extends its slide and declines below the $0.4365 low to complete the C wave.
Overall, ripple price is still in a medium-term uptrend as long as the $0.3500 pivot and crucial support area are intact. On the upside, the main hurdles for buyers are near the $0.5250, $0.5500 and $0.6000 resistance levels.