XRP Price Plunges After Massive 80% Rally, Buy on Decline?

After the court’s decision, XRP price rallied by more than 80% and rose above $0.80 against the US Dollar. It tested the $0.95 area and is currently correcting gains.

• Ripple coin price climbed higher above the $0.65 and $0.80 resistance levels against the US Dollar.
• It is trading well above $0.5000 and the 100-day simple moving average.
• There was a break above a key bearish trend line with resistance near $0.50 on the daily chart of the XRP/USD pair (data source from Kraken).
• The pair is currently correcting gains but the bulls could be active near $0.70.

Ripple’s XRP price surged by over 80%

Following the court ruling in favor of Ripple, XRP saw a huge rally above the $0.45 resistance level. It broke several hurdles near $0.50, pulling Bitcoin and Ethereum higher as well.

There was a break above a key bearish trend line with resistance near $0.50 on the daily chart of the XRP/USD pair. This opened the doors for a strong rise above the $0.65 resistance. The price increased by more than 80% and even increased to the level of $0.95.

There remained a high near $0.9479 and the price is now correcting to the upside. It is trading below the 23.6% Fib retracement level of the upward move from the $0.4460 low to $0.9479 high.

XRP is still well above $0.5000 and the 100-day simple moving average. An immediate resistance is near the $0.85 level. The first major resistance is observed near the $0.92 level, above which the price is likely to correct again towards the $0.95 resistance area.

Source: XRPUSD on Tradingview.com

The main resistance could be near the $1 level. Breaking the $1 resistance could open the doors for a sharp rise towards the $1.10 resistance. Above the $1.10 level, the next major resistance could be near the $1.20 level.

Are dips supported?

If XRP fails to clear the $0.850 resistance, it could continue to decline. On the downside, an initial support is near the $0.750 level.

The first major support could be near the $0.70 level or the 50% Fib retracement level of the rise from the $0.4460 low to $0.9479 high. If the price fails to stay above $0.70, it could start another major decline towards $0.55.

technical indicators

Daily MACD – The MACD for XRP/USD is now losing momentum in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for XRP/USD is in the overbought zone.

Key Support Levels – $0.7500, $0.7000 and $0.6500.

Key Resistance Levels – $0.8500, $0.9200 and $0.9500.