XRP Price Drops to Crucial Support: Can It Stage a Turnaround?
XRP price started a fresh decline below the $ 2.350 zone. The price retested the $ 2.20 support zone and is currently attempting a recovery wave.
- XRP price started a fresh decline from the $ 2.720 zone.
- The price is now trading below $ 2.50 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $ 2.45 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair might start another increase if it clears the $ 2.40 resistance.
XRP Price Dives To $ 2.20
XRP price failed to start a fresh increase above the $ 2.50 level and started a fresh decline, like Bitcoin and Ethereum. There was a move below the $ 2.45 and $ 2.40 levels.
The price declined over 5% and there was a move below the $ 2.320 support. Finally, the price spiked below the $ 2.20 support. A low was formed at $ 2.171 and the price is now correcting losses. There was a move above the $ 2.250 level.
The price cleared the 23.6% Fib retracement level of the downward move from the $ 2.720 swing high to the $ 2.171 low. The price is now trading below $ 2.50 and the 100-hourly Simple Moving Average.
On the upside, the price might face resistance near the $ 2.40 level. The first major resistance is near the $ 2.450 level. There is also a connecting bearish trend line forming with resistance at $ 2.45 on the hourly chart of the XRP/USD pair. The trend line is close to the 50% Fib retracement level of the downward move from the $ 2.720 swing high to the $ 2.171 low.
The next resistance is $ 2.50. A clear move above the $ 2.50 resistance might send the price toward the $ 2.55 resistance. Any more gains might send the price toward the $ 2.620 resistance or even $ 2.80 in the near term. The next major hurdle for the bulls might be $ 3.00.
Are Dips Supported?
If XRP fails to clear the $ 2.40 resistance zone, it could start another decline. Initial support on the downside is near the $ 2.25 level. The next major support is near the $ 2.20 level.
If there is a downside break and a close below the $ 2.20 level, the price might continue to decline toward the $ 2.050 support. The next major support sits near the $ 2.00 zone.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major Support Levels – $ 2.20 and $ 2.050.
Major Resistance Levels – $ 2.40 and $ 2.450.