XRP Price Under Pressure—Can It Survive This Support Test?

Overview

XRP has entered a phase of decline, breaking below critical support levels and struggling to regain upward momentum. The cryptocurrency is now facing significant resistance, which poses challenges for any potential recovery.

Recent Price Movements

XRP’s price has recently fallen below $2.10, marking the start of a new downward trend. The cryptocurrency is currently grappling with resistance at the $2.050 pivot level. Following this decline, XRP’s price has dipped below the $2.040 zone and is trading under $2.020, as well as below the 100-hourly Simple Moving Average. A bearish trend line has formed, indicating resistance at $2.050 on the hourly chart of the XRP/USD pair.

The situation worsened when XRP attempted to rally above $2.120 but could not maintain its upward trajectory, similar to other cryptocurrencies like Bitcoin and Ethereum. This inability to sustain gains led to a further decline, and XRP has now settled below the $2.00 support level. A low was recorded at $1.993, with the price consolidating losses beneath the 23.6% Fibonacci retracement level, which reflects the downward movement from the $2.177 swing high to the $1.993 low.

Currently, XRP is trading below the resistance levels of $2.050 and the 100-hourly Simple Moving Average. If an upward movement occurs, resistance is anticipated near the $2.0350 level, with the primary resistance still at $2.050. A close above this level could potentially lead XRP toward $2.085 and the 50% Fibonacci retracement level of the earlier decline. However, the next significant hurdle for upward movement is identified at the $2.10 mark.

If XRP fails to overcome the $2.050 resistance, it may initiate a new decline. The initial support level on the downside is positioned around $2.00, with a subsequent major support near $1.9850. A breakdown and close below this latter level could lead to further declines, potentially targeting $1.920 and lower levels, including $1.880 and $1.820.

Technical Analysis

• Hourly MACD: The MACD indicator for XRP/USD is gaining momentum in the bearish zone, suggesting a continued downward trend.
• Hourly RSI: The Relative Strength Index for XRP/USD is currently below the 50 level, indicating bearish sentiment.
• Major Support Levels: The key support levels identified are $2.00 and $1.9850.
• Major Resistance Levels: The primary resistance levels are at $2.050 and $2.10.

From Author

The current price action of XRP shows a clear struggle to maintain upward momentum, as it faces multiple levels of resistance and potential support challenges. The technical indicators suggest a bearish sentiment, which could influence traders’ strategies moving forward. Observing how XRP interacts with these support and resistance levels will be crucial for understanding its near-term trajectory.

Impact on the Crypto Market

• The decline in XRP’s price may affect overall market sentiment, particularly among altcoins.
• Resistance levels at $2.050 and $2.10 could serve as critical points for traders to watch for potential reversal or continuation patterns.
• The bearish trend indicated by the MACD and RSI may lead to increased selling pressure if support levels fail to hold.
• A significant breakdown below $1.9850 could trigger further losses, impacting market confidence.
• XRP’s performance could influence broader market trends, especially if it correlates with movements in larger cryptocurrencies like Bitcoin and Ethereum.