XRP has initiated a fresh decline from the $2.350 zone. The price is currently moving lower, with potential to drop further below the $2.30 support level, indicating continued bearish pressure in the near term.
Current Market Situation
XRP recently found support near $2.265 and attempted a rebound alongside Bitcoin and Ethereum. It managed to climb above the $2.30 and $2.32 resistance levels, showing brief bullish momentum.
The price even broke above the 23.6% Fibonacci retracement level of the downward move from the $2.4767 swing high to the $2.2670 low. However, sellers became active again near the $2.350 level, halting the recovery.
A new connecting bearish trend line is forming with resistance near $2.305 on the hourly chart of the XRP/USD pair. The pair is now trading below $2.35 and the 100-hour Simple Moving Average, indicating a lack of bullish strength.
Key resistance levels to watch are near $2.340 and $2.3720. The latter is close to the 50% Fibonacci retracement level of the same downward move. A clear break above the $2.370 resistance might push the price toward the $2.40 level.
Further gains could open the doors for a move toward $2.420 or even $2.450. The next major resistance for bulls might be near $2.50. For those looking to monitor these movements in real-time, consider using professional tools to track live crypto charts.
Potential Downside Risks
If XRP fails to climb above the $2.3720 resistance zone, it could start another decline. Initial support on the downside is near the $2.280 level. The next major support is near $2.2650.
A downside break below the $2.2650 support might send the price toward the $2.2350 support zone. The next key support is near the $2.20 level, which could be tested if the bearish momentum continues.
Technical Indicators
- Hourly MACD: The MACD for XRP/USD is now gaining pace in the bearish zone, suggesting increasing selling pressure.
- Hourly RSI: The Relative Strength Index is currently below the 50 level, indicating bearish momentum.
Main Support Levels: $2.2650, $2.2350
Main Resistance Levels: $2.3720, $2.420
Frequently Asked Questions
What is causing the current decline in XRP's price?
The decline is driven by a combination of broader market trends, resistance near key levels, and increased selling pressure. Resistance near $2.35 and the formation of a bearish trend line have contributed to the downward movement.
What are the key support levels for XRP?
The immediate support levels are $2.2650 and $2.2350. If these levels break, the price could test the $2.20 zone, which may serve as a critical support area.
Can XRP recover soon?
A recovery is possible if XRP breaks above the $2.37 resistance level. Such a move could initiate a rally toward $2.40 or higher. However, failure to break resistance may lead to further declines.
How do technical indicators reflect XRP's current trend?
The MACD shows bearish acceleration, and the RSI remains below 50, both indicating that sellers are currently in control. These signals suggest further downside unless buying volume increases.
What trading strategies are suitable in this market condition?
Traders might consider waiting for a break above key resistance or below support before taking positions. Risk management is essential due to the current volatility. For advanced trading methods, you can explore more strategies.
Is now a good time to invest in XRP?
Market conditions are currently bearish, so cautious observation is advised. Investing during high volatility requires careful analysis of support and resistance levels, as well as overall market sentiment.