XRP price started a fresh recovery wave from the $2.20 zone. The price is now consolidating and might struggle to clear the $2.50 resistance zone.
- XRP price started a decent upward move from the $2.20 support zone.
- The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trend line with support at $2.550 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair might continue to move up if it clears the $2.5350 resistance zone.
XRP Price Faces Hurdles
XRP price started a recovery wave from the $2.20 zone, similar to Bitcoin and Ethereum. The price managed to climb above the $2.40 and $2.50 resistance levels; however, the bulls encountered significant pushback near the $2.640 mark.
After reaching that level, the price corrected some of its gains and dipped below $2.550. This movement also included a breach of a connecting bullish trend line that had support at $2.550, as illustrated on the hourly chart for the XRP/USD pair. Notably, the price fell beneath the 50% Fibonacci retracement level of the upward move from the $2.211 swing low to the $2.6390 high.
Currently, the price trades below $2.550 and the critical 100-hourly Simple Moving Average, indicating the presence of selling pressure. The first major resistance level to watch is the $2.5350 mark, while the $2.50 level remains a significant psychological barrier for bulls attempting a recovery.
The subsequent resistance threshold to monitor is $2.640. A clear breach above this level could propel the price towards $2.720. Failure to maintain momentum could stall advances, with potential resistance escalating to $2.80 or even $2.850 short-term. Ultimately, a significant challenge for the bulls remains at the $3.00 level.
Another Decline?
If XRP cannot overcome the $2.5350 resistance zone, a new decline could commence, starting with initial support near the $2.4250 level. The next major support level looms at $2.3750, coinciding with the 61.8% Fibonacci retracement level of the upward move from $2.211 to $2.6390.
A decisive downside break and a close below $2.3750 could indicate further selling pressure, with potential declines towards the $2.320 support level. The key support area resides around the $2.20 zone, which bulls will strive to maintain.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is currently losing momentum in the bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD sits below the 50 level, signaling a potential weakening trend.
Major Support Levels – $2.4250 and $2.3750.
Major Resistance Levels – $2.5350 and $2.640.
