Ripple Price Forecast: Can XRP/USD Break This Resistance?

Ripple price formed a support above the $0.5000 level against the US Dollar. XRP price is currently correcting higher, but it is facing a major resistance near $0.5600.

During the past few days, we noticed a consolidation phase in the cryptocurrency market. All major cryptocurrencies such as bitcoin, Ethereum, ripple, bitcoin cash and litecoin traded in a range. Recently, there was an upside correction, but upsides remained capped.

Ripple Price Analysis Takeaways:

• Ripple price found support near $0.5000 after a major downside move earlier this month against the US Dollar.
• There are two bearish trend lines formed with resistance at $0.5600 and $0.6000 on the 4-hours chart of XRP/USD.
• The pair must clear the $0.5600 resistance zone and the 100 SMA to move into a positive zone.

Looking at the 4-hours chart, ripple price declined heavily after it was rejected from the $0.7000 resistance zone. It fell and broke the $0.6500, $0.6000 and $0.5600 support zones.

Moreover, there was a close below the $0.5600 pivot level and the 55 simple moving average (orange, 4-hour) and the 100 SMA (green). The price tested the $0.5000 support zone where buyers emerged.

An upside recovery was initiated and the price tested the 23.6% Fib retracement level of the last decline from the $0.7047 high to $0.5037 low. The upside move was capped by the $0.5600 pivot level and the 55 SMA.

XRP price failed to move above the $0.5600 resistance and is currently consolidating near $0.5300. On the upside, there are two bearish trend lines formed with resistance at $0.5600 and $0.6000 on the 4-hours chart of XRP/USD.

The pair must break the $0.5600 resistance and the 55 SMA to gain traction in the near term. Above $0.5600, the next hurdle for buyers is at $0.6000. On the flip side, if ripple fails to move past $0.5600, it may perhaps retest $0.5000, below which, there is a risk of a sharp bearish wave.

The current market sentiment is stable, but buyers need to gather pace for more gains. Many experts still believe bitcoin price could push towards $20,000 by 2018. If that’s the case, ripple price may possibly follow BTC and trade higher.