XRP has retreated from recent highs near $2.58 and now trades around $2.40. Technical indicators suggest the cryptocurrency could face resistance at $2.50 as traders watch whether the token can maintain support above $2.32 to fuel another advance.
Key Takeaways:
- •XRP reached a high of $2.58 before pulling back below $2.50, with the price now hovering near the 100-hour simple moving average at $2.40.
- •A short-term bearish trend line has formed with resistance at $2.44, while the MACD indicator shows increasing bearish momentum.
- •The cryptocurrency needs to hold above $2.32 support to maintain its upward trajectory. A break below this level could trigger declines toward $2.25.
Price Action Shows Mixed Signals After Rally
XRP climbed above $2.42 and $2.50 earlier this week, mirroring gains in Bitcoin and Ethereum. The token accelerated past $2.55 resistance before peaking at $2.58, according to data from Kraken.
The cryptocurrency has since corrected, falling below $2.50 and dropping beneath the 50% Fibonacci retracement level of its climb from $2.24 to $2.58. Trading activity now centers around $2.40, where the 100-hour simple moving average sits.
A short-term bearish trend line has emerged on the hourly chart with resistance at $2.44. If XRP attempts another rally, immediate resistance appears near $2.45.
Critical Levels Define Next Move
The first major barrier stands at $2.50. A decisive break above that level could push XRP toward $2.55, with further gains potentially reaching $2.62. Extended bullish momentum might carry the price to $2.68, though the more significant challenge for buyers would arrive near $2.75.
Failure to clear $2.50 could trigger renewed selling pressure.
Initial support emerges at $2.365, which aligns with the 61.8% Fibonacci retracement of the recent advance from $2.24 to $2.58. More substantial support sits at $2.32.
A close below $2.32 would likely accelerate losses toward $2.25. The next support zone appears near $2.20, with further declines potentially extending to $2.12 if that level fails to hold.
Technical indicators paint a cautious picture. The hourly MACD has gained momentum in bearish territory, while the Relative Strength Index has dropped below 50, suggesting weakening buying pressure.
Understanding Key Trading Metrics
The Simple Moving Average tracks the average price over a specified period, with the 100-hour SMA providing a medium-term trend reference. Fibonacci retracement levels identify potential support and resistance zones based on the mathematical relationships discovered by the 13th-century mathematician.
The MACD, or moving average convergence divergence, measures momentum by comparing two moving averages. The RSI gauges the speed and magnitude of price changes on a scale from zero to 100, with readings below 50 typically indicating bearish momentum.
Closing Thoughts
XRP faces a critical test at $2.50 resistance as traders evaluate whether the recent pullback represents a temporary pause or the start of a deeper correction. The cryptocurrency must maintain support above $2.32 to preserve the potential for another leg higher, with technical indicators suggesting traders should watch for clear directional signals before committing to positions.