XRP's Rocky Road: Recovery Stalls at Key Resistance as Bearish Signs Emerge
XRP initiated a promising recovery, breaching the $2.00 mark, but its upward momentum appears to be waning. The digital asset is now facing significant resistance, signaling a potential reversal that could see its price drop below $1.95. This technical outlook suggests a critical period ahead for XRP traders and investors.
XRP's Brief Surge Encounters Strong Headwinds
Following a period of consolidation above the $1.850 support level, XRP mirrored the recovery trends observed in major cryptocurrencies like Bitcoin and Ethereum. The asset successfully climbed past $1.950 and $1.980, briefly entering a positive short-term zone. It even saw a spike above the crucial $2.00 psychological barrier, demonstrating bullish intent. However, this rally proved short-lived, as XRP failed to overcome the formidable resistance positioned near $2.020. This rejection has led to the formation of a new bearish trend line on the hourly chart, with resistance at $2.030, indicating a shift in market sentiment.
Critical Juncture: Key Levels to Watch for XRP
Currently, XRP is trading below both the $2.00 mark and the 100-hourly Simple Moving Average, underscoring the renewed bearish pressure. For any renewed upward movement, XRP would need to decisively break through resistance levels around $2.00 and, more critically, $2.020. The $2.020 level also aligns with the 83.2% Fibonacci retracement of its recent downward move from the $2.065 swing high to the $1.847 low, making it a pivotal point. A sustained close above $2.020 could pave the way for a rally towards $2.065, and potentially further gains towards $2.10, $2.150, and even $2.250. Conversely, a failure to breach the $2.020 resistance could trigger a significant downturn. Immediate downside support is anticipated around $1.950, followed by a major support zone at $1.9320. A break below this latter level would likely accelerate the decline towards $1.850, with subsequent support levels at $1.820 and $1.750 potentially coming into play. Technical indicators, such as the Hourly MACD, are currently showing bearish momentum, while the Relative Strength Index (RSI) is positioned below the 50 level, reinforcing concerns about short-term downward pressure.
