XRP's Faltering Recovery: Is Another Collapse Imminent?
XRP's recent attempt to reclaim stability above the crucial $2.80 mark appears to be losing momentum, with the digital asset now battling significant resistance near $2.88. This struggle raises concerns among investors, as a sustained failure to break past these hurdles could pave the way for a renewed decline, potentially pushing XRP back below the key $2.80 support zone.
Price Action and Resistance Challenges
Following an initial rebound that saw XRP recover from the $2.72 level, mirroring slight gains in Bitcoin and Ethereum, the cryptocurrency managed to climb above the $2.75 and $2.80 resistance levels. This recovery also saw the price move past the 50% Fibonacci retracement level of its previous downtrend from $3.04 to $2.70. However, the upward momentum has stalled. XRP is currently finding it difficult to maintain its position above the $2.88 resistance, and notably, a short-term rising channel with support at $2.850 on the hourly chart has already been breached.
Critical Support and Resistance Levels
Currently trading above $2.80 and the 100-hourly Simple Moving Average, XRP's immediate future hinges on its ability to defend critical support. If bulls can protect the $2.8120 support level, another attempt at an upside push might be on the cards. Key resistance levels to watch include $2.880, followed by the 61.8% Fibonacci retracement at $2.9160, then $2.960, and potentially $3.00. The next major challenge for a sustained rally lies near $3.050. Conversely, a failure to clear the $2.880 resistance zone could trigger further downward movement. Initial downside support is found near $2.8120 and then $2.80. A decisive close below the $2.80 level could lead to a drop towards $2.740, with the next significant support at $2.70. Technical indicators reflect this precarious position, with the Hourly MACD losing pace in the bullish zone and the Hourly RSI currently positioned below the 50 level, signaling weakening bullish sentiment.
