What to Know:
- •XRP recovered from $2.220 support and climbed past $2.40, now trading above its 100-hourly simple moving average
- •A bearish trend line at $2.60 presents immediate resistance, with bulls needing to clear $2.660 to target further gains toward $2.80
- •Failure to breach $2.60 could trigger a decline toward $2.420 support, with deeper losses potentially reaching $2.20
Technical Recovery Tests Key Levels
XRP mounted a recovery similar to Bitcoin and Ethereum after establishing support at $2.220. The cryptocurrency climbed above $2.320 and $2.40, entering what technical analysts consider positive territory.
Bulls pushed prices beyond the 61.8% Fibonacci retracement level of the downward move from $3.05 to $1.40.
However, sellers remain active near $2.60 and $2.620. A bearish trend line has formed on the hourly chart with resistance at $2.60, according to data from Kraken. The cryptocurrency now trades above $2.50 and its 100-hourly simple moving average, suggesting near-term momentum favors buyers.
Fresh upward movement could encounter initial resistance near $2.550.
The primary barrier sits at $2.60 and the trend line. Beyond that, the main hurdle appears at $2.660, which corresponds to the 76.4% Fibonacci retracement level of the decline from $3.05 to $1.40.
A decisive break above $2.660 might propel XRP toward $2.720. Additional gains could push prices to $2.750, with the next major resistance at $2.80.
Downside Risks Emerge Below Critical Support
If XRP fails to clear the $2.60 resistance zone, a fresh decline could materialize. Initial support on the downside sits at $2.50. The next significant support level appears at $2.420.
A breakdown and close below $2.420 might trigger further selling toward $2.320. The next major support rests near $2.250, below which prices could continue falling toward $2.20. Technical indicators show the hourly MACD gaining momentum in bullish territory, while the Relative Strength Index stands above 50, indicating buyers maintain control for now.
Understanding the Technical Framework
Fibonacci retracement levels represent horizontal lines that indicate where support and resistance are likely to occur. Traders use these levels, derived from the Fibonacci sequence, to identify potential reversal points. The 61.8% and 76.4% levels mentioned in XRP's analysis are considered significant thresholds where price action often stalls or reverses.
A Simple Moving Average calculates the average price over a specific period, with the 100-hour timeframe providing insight into short-term trends.
When price trades above this average, it typically signals bullish momentum. The MACD, or moving average convergence divergence, measures the relationship between two moving averages to identify trend changes and momentum shifts.
The Relative Strength Index ranges from zero to 100, with readings above 50 suggesting bullish conditions. These tools combined help traders assess whether XRP's current recovery has sufficient strength to overcome resistance levels or if the cryptocurrency faces renewed selling pressure.
Closing Thoughts
XRP's technical setup presents a critical juncture, with the $2.60 resistance determining whether the cryptocurrency extends its recovery or retreats toward lower support levels. The 100-hourly simple moving average and positive technical indicators suggest near-term bias favors buyers, though sellers have defended the $2.60-$2.620 zone. A breakthrough above $2.660 could open the path to $2.80, while failure to breach $2.60 risks a pullback to $2.420 or lower.