The XRP price recently found a strong support level around the $1.90 zone, paving the way for a potential recovery. With bullish trends emerging, there is anticipation that XRP could soon attempt to breach the critical resistance at the $2.35 zone.
Current Market Dynamics and Price Movements
Recently, XRP experienced a downward trend, slipping below the $2.25 mark. Consequently, the price is currently trading below $2.320, as well as the 100-hourly Simple Moving Average. Despite these setbacks, there was a notable break above a connecting bearish trend line, with resistance identified at $2.22 on the hourly chart of the XRP/USD pair (data sourced from Kraken). This technical development suggests that the pair may initiate another upward movement if it successfully surpasses the $2.36 resistance level.
XRP Price Eyes Fresh Surge
Following the broader market trend influenced by Bitcoin and Ethereum, XRP’s price extended its decline beyond the $2.30 level. This decline saw the price dipping below the $2.20 and $2.050 thresholds, even touching the $2.00 support level momentarily. A recent low was recorded at $1.898, from which the price is now attempting to correct some losses. A recovery move above the $2.20 level has been observed, with the price climbing past the 50% Fibonacci retracement level, calculated from the $2.64 swing high to the $1.898 low.
Furthermore, there was a significant break above a connecting bearish trend line, with resistance marked at $2.22 on the hourly chart of the XRP/USD pair. The price even spiked above the 61.8% Fibonacci retracement level of the downward trajectory from the $2.64 swing high to the $1.898 low. Despite this, bearish forces remain active below the $2.40 level, as the price continues to trade under $2.320 and the 100-hourly Simple Moving Average. On the upside, the immediate resistance is anticipated near the $2.36 level, with the first major resistance positioned around the $2.40 mark.
The subsequent resistance is noted at $2.475. A decisive move above the $2.4750 resistance might propel the price towards the $2.550 resistance. Further gains could potentially push the price to the $2.650 resistance or even $2.720 in the short term. The next significant obstacle for the bulls might be the $2.880 level.
Potential for Another Decline?
Should XRP fail to overcome the $2.360 resistance zone, it could face another downward trajectory. The initial support on the downside is situated near the $2.150 level, while the next significant support lies around the $2.050 level. In the event of a downside break and a closure below the $2.050 level, the price might continue its decline towards the $1.880 support. The next substantial support is located near the $1.750 zone.
Technical Indicators
- Hourly MACD: The MACD for XRP/USD is currently losing momentum in the bullish zone.
- Hourly RSI (Relative Strength Index): The RSI for XRP/USD is presently above the 50 level, indicating a moderately bullish sentiment.
- Major Support Levels: $2.1500 and $2.0500.
- Major Resistance Levels: $2.3500 and $2.4750.
In conclusion, XRP’s price is in a dynamic phase, with potential for both upward and downward movements. Traders should watch closely for any breakout above the resistance levels to capitalize on potential gains or prepare for further declines if support levels are breached.
