The XRP price has recently faced challenges in maintaining gains above the $2.40 mark. With a decrease of over 10%, the cryptocurrency is at risk of declining further towards the $2.00 support level. This analysis delves into the latest price movements and outlines potential future trends for XRP.
Current Market Overview
XRP’s price trajectory took a downturn as it began a correction from the $2.50 resistance zone. The digital asset is currently trading below $2.30, alongside the 100-hourly Simple Moving Average, indicating a bearish trend. A connecting bearish trend line is forming, with resistance observed at $2.26 on the hourly chart of the XRP/USD pair, according to data from Kraken. A potential increase is possible if the price manages to breach the $2.32 resistance.
XRP Price Dips Again
The XRP price struggled to initiate a fresh rally above the $2.50 resistance zone, mirroring the trends seen in major cryptocurrencies like Bitcoin and Ethereum. This led to a decline below the $2.35 level, further slipping past the $2.30 and $2.25 thresholds. The price even plummeted below the $2.20 support, reaching a low at $1.989 before beginning a corrective phase. During this phase, XRP managed to climb back above the $2.20 level, surpassing the 23.6% Fibonacci retracement level of the downward move from the $2.64 swing high to the $1.98 low.
Despite this recovery, XRP remains under the $2.30 mark and the 100-hourly Simple Moving Average, facing potential resistance near $2.20. The first significant resistance lies around the $2.250 level, with a connecting bearish trend line forming resistance at $2.26. Further resistance is observed at $2.30 or the 50% Fibonacci retracement level of the decline from the $2.64 swing high to the $1.98 low. A decisive move above the $2.30 resistance could propel the price towards the $2.350 level, with additional gains potentially driving it to the $2.40 or even $2.420 mark. The bulls may encounter a significant hurdle at $2.550.
Potential for More Losses?
If XRP fails to surpass the $2.250 resistance zone, it risks initiating another downward trend. The initial support on this path is near the $2.050 level, followed by a more substantial support at the $2.00 mark. Should the price experience a downside break and close beneath the $2.00 level, further declines could lead it toward the $1.880 support. The next critical support zone resides near $1.750.
Technical Indicators
- Hourly MACD: The MACD for XRP/USD is currently accelerating within the bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for XRP/USD has slipped below the 50 level, indicating bearish momentum.
- Major Support Levels: $2.0500 and $2.0000.
- Major Resistance Levels: $2.2500 and $2.3000.
In conclusion, XRP’s recent price action suggests a cautious outlook, with potential for both upward recovery and further declines. Traders and investors should closely monitor the key resistance and support levels, as they will significantly influence the cryptocurrency’s next moves. Staying informed of the latest market trends and technical indicators will be crucial in navigating the evolving landscape of XRP trading.
