XRP Price Teeters Below Key Resistance, Bullish Breakout or Further Dip on the Horizon?
XRP is currently locked in a critical consolidation phase, trading below significant resistance levels that will determine its immediate future. Despite showing nascent signs of recovery, the digital asset faces formidable barriers that could either trigger a substantial "upside explosion" or lead to further price corrections.
Battling Bearish Resistance: Potential for an Upside Surge
Following a period of consolidation, XRP found robust support above $2.30, initiating a recovery wave akin to its counterparts Bitcoin and Ethereum. This bullish push allowed XRP to climb past the $2.350 and $2.40 thresholds, even surpassing the 61.8% Fibonacci retracement level of its recent downtrend (from $3.05 to $1.40). However, the momentum is being met with strong resistance from bears, particularly around the $2.550 and $2.60 price points. A key bearish trend line, coupled with the 100-hourly Simple Moving Average, presents immediate resistance at $2.50 on the hourly chart. Should XRP successfully breach the $2.60 resistance, it could ignite a fresh upward trajectory, potentially testing the 76.4% Fib retracement at $2.660. Sustained gains above this level might pave the way for targets at $2.750, $2.780, and even $2.820.
Downside Risks: Crucial Support Levels to Watch
Conversely, XRP's inability to overcome the $2.50 resistance zone could trigger a renewed downtrend. Initial support for such a decline is anticipated around the $2.40 level. A more significant support lies near $2.30, which, if broken, could see the price drop towards $2.2420. Further bearish pressure might push XRP down to the $2.220 and possibly $2.120 support areas. Technical indicators reinforce this cautious outlook, with the Hourly MACD showing diminishing bullish pace and the Relative Strength Index (RSI) dipping below the 50 mark, signaling weakening buying pressure.
Technical Snapshot
- Hourly MACD: Losing pace in the bullish zone.
- Hourly RSI: Below the 50 level.
- Major Support Levels: $2.40, $2.30.
- Major Resistance Levels: $2.50, $2.60.
