XRP Struggles to Maintain Bullish Momentum Amidst Market Correction
XRP recently experienced a notable increase above the $2.120 mark, but this bullish momentum appears to be waning as the market pauses for reassessment. The cryptocurrency is now undergoing a correction, grappling to remain within a positive trading zone, signaling a cautious period for investors.
XRP Faces Correction Amidst Market Reassessment
Following its ascent, XRP initiated a downside correction, testing the crucial $2.080 support level. Currently, the price trades below both $2.120 and the 100-hourly Simple Moving Average, indicating a bearish sentiment in the short term. A significant bearish trend line has also formed on the hourly chart of the XRP/USD pair, with a key resistance point emerging around $2.110. For XRP to reignite its upward trajectory, a decisive break above the $2.150 resistance zone will be essential.
Critical Support and Resistance Levels in Focus
Should a fresh upward movement materialize, XRP would first encounter resistance near $2.110, coinciding with the bearish trend line. Overcoming this, the next major hurdles lie at $2.150 and then $2.220. A sustained push past $2.220 could propel the price towards $2.2850 and potentially $2.350, with $2.420 representing a further significant challenge. Conversely, if XRP fails to clear the $2.150 resistance, it faces a renewed decline. Initial downside support is found near $2.080, aligning with the 61.8% Fib retracement level from the $1.984 swing low to the $2.220 high. A breach below the $2.040 and $2.00 levels could trigger a deeper correction, with the next major support zone at $1.9850, followed by $1.920.
Technical Indicators Signal Caution
Technical indicators underscore the current cautionary outlook. The Hourly MACD for XRP/USD is observed to be gaining pace in the bearish zone, while the Hourly RSI for XRP/USD has dipped below the 50 level, further reinforcing the potential for continued downward pressure in the near term. Investors are advised to monitor these key levels closely for signs of a reversal or further depreciation.
