XRP Faces Bearish Headwinds as Price Struggles Below Key Resistance
XRP's price has recently entered a fresh decline, dropping from the $2.550 mark and exhibiting clear bearish signals. The cryptocurrency is currently at risk of further depreciation in the near term, as it struggles to maintain momentum above critical resistance levels.
Current Market Dynamics and Downward Pressure
After failing to sustain its position above the $2.550 resistance, XRP initiated a downside correction, mirroring trends seen in other major cryptocurrencies like Bitcoin and Ethereum. The price has dipped below both the $2.520 and $2.50 levels, and crucially, it is now trading beneath its 100-hourly Simple Moving Average. Compounding this bearish outlook is a significant bearish trend line forming with resistance at $2.580 on the hourly chart against the USD, indicating strong selling pressure.
Critical Support and Resistance Levels to Watch
For XRP to stage any recovery, it must first overcome immediate resistance near $2.480, followed by the $2.50 psychological level. A more formidable barrier lies at $2.550. A decisive breach and sustained trading above this point could potentially propel the price towards the $2.580 trend line and further to $2.650, with the next major bullish target at $2.720. Conversely, should XRP fail to break the $2.580 resistance, further declines are anticipated. Initial support for a downtrend is identified around $2.410, which aligns with the 76.4% Fibonacci retracement level of the recent upward wave from $2.377 to $2.552. A continued downward movement past $2.380 could see the price testing lower support zones at $2.320, $2.250, and potentially $2.20.
Technical Indicators Confirm Bearish Momentum
Technical indicators corroborate the current bearish sentiment. The Hourly Moving Average Convergence Divergence (MACD) for XRP/USD is gaining bearish momentum within the negative zone, while the Relative Strength Index (RSI) is positioned below the 50 level, signaling a lack of buying strength. These indicators collectively suggest that XRP remains under considerable bearish pressure, urging investors to proceed with caution.
