Ripple price started a strong rise above the $0.1640 and $0.1650 resistance levels against the US dollar.
The bulls were able to push the price above $0.1750 and a high was formed near $0.1808.
There is a short term contracting triangle forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair (data source from Kraken).
The price could correct a few points in the near term, but dips remain supported near $0.1700.
Ripple Price is Surging
Yesterday, we discussed the chances of a strong rally in ripple above the $0.1640 and $0.1650 resistance levels. XRP price did break the $0.1650 resistance area to start a solid upward move.
It broke the $0.1720 resistance and settled nicely above the 100 hourly simple moving average. The upward move gained pace above the $0.1750 level and the price traded to a new weekly high at $0.1808.
The price is currently correcting lower and trading below $0.1780. There was a break below the 23.6% Fib retracement level of the upward move from the $0.1605 low to $0.1808 high.
It seems like there is a short term contracting triangle forming with resistance near $0.1780 on the hourly chart of the XRP/USD pair. If there is an upside break, ripple price is likely to continue higher above the $0.1800 resistance area.
In the stated case, the price is likely to surge above the $0.1808 high and $0.1820. The next major resistance is near the $0.1880 level, above which the bulls are likely to aim a test of the $0.2000 barrier in the near term.
If ripple fails to continue above the $0.1780 and $0.1800 resistance levels, it could start a downside correction. The first major support is near the $0.1705 area. It is close to the 50% Fib retracement level of the upward move from the $0.1605 low to $0.1808 high.
The next major support is near the $0.1650 area (the recent breakout resistance), where the bulls are likely to take a strong stand.
Hourly MACD – The MACD for XRP/USD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 70 level and it is in the overbought zone.
Major Support Levels – $0.1750, $0.1705 and $0.1650.
Major Resistance Levels – $0.1780, $0.1800 and $0.1850.
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