As the US dollar gained strength following yesterday’s FOMC interest rate decision, the rally on ripple price stalled. XRPUSD peaked at $0.2499 late into yesterday’s New York session. Since then the cryptocurrency has been steadily trading lower. Earlier today, ripple price bottomed at $0.2382. As of this writing, XRPUSD is trading at $0.2407.
On the 1-hour time frame, it can be seen that ripple price has been testing a confluence of support around $0.2400. For one, this price coincides with the rising trendline when you connect the lows of July 27 and July 28. It also aligns nicely with the 38.2% Fib level when you draw the Fibonacci retracement tool from the low of July 28 to the high of July 29. Reversal candlesticks at this price could mean that XRPUSD may soon trade higher to $0.2499 where it topped yesterday. If resistance does not hold, the next ceiling could be at $0.3368 where it hit resistance on February 15.
On the other hand, a strong bearish close below yesterday’s low at $0.2347 could mean that support at the rising trendline will have been invalidated. It could suggest more downside potential for XRPUSD. The next support level is eyed at $0.2265 here the cryptocurrency may test the 100 SMA.