XRP Price Drops to Crucial Support: Can It Stage a Turnaround?
XRP price started a fresh decline below the $2.350 area. The price retested the $2.20 support area and is currently attempting a recovery wave.
- XRP price started a fresh decline from the $2.720 area.
- The price is currently below $2.50 and the 100 hourly simple moving average.
- There is a bearish trend line forming with resistance at $2.45 on the hourly chart of the XRP/USD pair (data source: Kraken).
- If the $2.40 resistance is exceeded, the pair may start rising again.
XRP Price Dips to $2.20
XRP price failed to initiate a fresh rise above $2.50 and started a fresh decline, e.g. Bitcoin and Ethereum. The price fell below the $2.45 and $2.40 levels.
The price fell by more than 5% and fell below the $2.320 support. Finally, the price surged below the $2.20 support. A low was formed at $2.171 and the price is currently correcting losses. The price rose above $2.250.
The price cleared the 23.6% Fib retracement level of the downward move from the $2.720 swing high to $2.171 low. The price is currently below $2.50 and the 100 hourly simple moving average.
On the bright side, the price may face resistance near $2.40. The first major resistance level is near $2.450. There is also a bearish trend line forming with resistance at $2.45 on the hourly chart of the XRP/USD pair. The trendline is near the 50% Fib retracement level of the downward move from the swing high of $2.720 to the low of $2.171.
The next level of resistance is $2.50. A clear break above the $2.50 resistance could push the price towards the $2.55 resistance. If there is further upside, the price may move towards the $2.620 resistance or even $2.80 in the short term. The next major obstacle for the bulls is likely to be $3.00.
Do you support the decline?
If XRP fails to break above the $2.40 resistance zone, it may start another decline. Initial support on the downside is near $2.25. The next major support is near $2.20.
If there is a downside breakout and a close below the $2.20 level, the price may continue to fall towards the $2.050 support. The next major support is near the $2.00 area.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now losing speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently below the 50 level.
Major support levels – $2.20 and $2.050.
Major resistance levels – $2.40 and $2.450.
