XRP Price Rebounds Cautiously – Can Momentum Build From Here?
XRP has shown signs of a potential recovery, initiating a wave above the $2.40 mark after establishing a solid base. However, the digital asset now faces a critical juncture, battling significant resistance near $2.5350, which could dictate its immediate trajectory and potentially trigger a fresh decline if not overcome.
Navigating Key Resistance
After forming a base above $2.20, XRP managed to push past initial resistance levels at $2.350 and $2.40. Bulls even propelled the price above $2.50 and briefly breached the 50% Fibonacci retracement level of the recent downward move from a $2.647 high to a $2.190 low. Despite these gains, bearish sentiment remains strong around the $2.5350 level, effectively capping further upward movement. The price's inability to clear the 76.4% Fib retracement level suggests that momentum is still fragile. Currently, XRP is trading below $2.50 but holds above the $2.40 level and the 100-hourly Simple Moving Average. A crucial bullish trend line provides support at $2.420 on the hourly chart. If XRP can gather strength for a fresh upward push, it would first encounter resistance near $2.480, followed by the significant $2.50 and $2.5350 levels. A decisive break above $2.5350 could open the door for a move towards $2.580, $2.650, and potentially the major hurdle at $2.720.
Downside Risks and Technical Indicators
Should XRP fail to breach the $2.50 resistance zone, a renewed downside correction could be on the horizon. Immediate support on the downside lies near $2.420, reinforced by the hourly trend line. Further significant support levels are found at $2.40, $2.350, and then $2.320. A sustained break below $2.40 could lead to a continued decline towards $2.250, signaling a stronger bearish presence. Technical indicators currently paint a mixed picture. The Hourly MACD for XRP/USD is gaining bearish pace, suggesting increasing selling pressure. Similarly, the Hourly RSI (Relative Strength Index) for XRP/USD is presently positioned below the 50 level, indicating a lack of strong buying momentum in the short term. These indicators highlight the cautious sentiment surrounding XRP's price action.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries inherent risks. Readers are advised to conduct their own research before making any investment decisions.
