XRP/USD Could Extend ABC Correction

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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.

Key takeaways

  • 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.

Chart sourced by TradingView, Binance.

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.

Also, read: XRP Lauded by WTO as it Believes Cryptocurrencies can Transform Global Commerce

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.

Summary

Ripple Price Analysis: XRP/USD Could Extend ABC Correction

Article Name

Ripple Price Analysis: XRP/USD Could Extend ABC Correction

Description

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.

Author

LATIKA MEHROTRA

Publisher Name

COINGAPE

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