XRP Price Plunges, Bearish Momentum Intensifies Amid Key Resistance
XRP has experienced a notable downturn, extending losses and trading below the crucial $2.080 mark, signaling a deepening weakness in its market position. Despite attempts to initiate a recovery, the digital asset faces significant headwinds, particularly around the $2.120 level, which could determine its short-term trajectory.
Current Price Action and Resistance Hurdles
The XRP price began a fresh decline, breaching the $2.10 zone and falling below its 100-hourly Simple Moving Average. This downward movement saw the price dip below $2.120 and $2.10, entering a definitive short-term bearish territory, echoing similar trends observed in Bitcoin and Ethereum. A low was established at $2.034, and despite a consolidation of losses, efforts to surmount the $2.10 psychological barrier have been consistently thwarted by active bears. A key bearish trend line has also formed on the hourly chart, placing a strong resistance at $2.080. Should XRP muster an upward push, immediate resistance lurks at $2.080 and the trend line, followed by a major resistance near $2.120, which aligns with the 23.6% Fibonacci retracement level from the $2.415 swing high to the $2.034 low. Overcoming $2.120 could open the path to $2.20, with subsequent targets at $2.220 (50% Fib retracement) and potentially $2.280, leading towards $2.320 and the next major bullish hurdle at $2.350.
The Specter of Further Losses
However, if XRP fails to break past the $2.10 resistance zone, the likelihood of a fresh decline grows. Initial downside support is projected near $2.020, with the next critical support level around the psychological $2.00 mark. A decisive break and close below $2.00 could trigger a continued slide towards $1.950. Further major support lies at $1.920, below which the price could potentially plummet towards $1.880, indicating a volatile period ahead for XRP holders and traders.
Technical Indicators Signal Caution
Technical indicators further underscore the prevailing bearish sentiment. The Hourly MACD for the XRP/USD pair is gaining pace in the bearish zone, suggesting strong selling pressure. Concurrently, the Hourly Relative Strength Index (RSI) remains below the 50 level, reinforcing the bearish outlook. Key support levels to watch are $2.020 and $2.00, while major resistance levels are identified at $2.10 and $2.120. The market remains at a pivotal juncture, with resistance points proving formidable challenges for any bullish resurgence.
