XRP price has begun a fresh decline, falling below $2.080 and now struggling near the $2.040 resistance level. It is currently trading below $2.050 and the 100-hour Simple Moving Average. A bearish trend line is forming with resistance at $2.040 on the hourly XRP/USD chart. The pair could extend its decline if it settles below $2.00.
After a failed recovery attempt above $2.150, XRP started dropping below $2.080 and $2.050, eventually moving under the $2.00 support to form a low at $1.993. The price has since started a minor upside correction, climbing above the 23.6% Fibonacci retracement level of the drop from the $2.177 high to the $1.993 low. However, selling pressure is evident near $2.040 and $2.050, reinforced by the bearish trend line at $2.040.
For any fresh upward move, the price must overcome resistance near $2.040. The first major resistance is around $2.080, which aligns with the 50% Fibonacci retracement level. A close above $2.080 could push the price toward $2.012, followed by hurdles at $2.150, $2.185, $2.220, and potentially $2.250.
If XRP fails to break the $2.040 resistance, it could resume its decline. Initial support lies near $2.00, with the next major support around $1.988. A break and close below $1.988 might lead to further declines toward $1.920, with additional support near $1.880 and possibly $1.820.
Technical Indicators:
– Hourly MACD: Losing momentum in the bearish zone.
– Hourly RSI: Currently above the 50 level.
– Major Support Levels: $2.00 and $1.985.
– Major Resistance Levels: $2.040 and $2.080.
Frequently Asked Questions
FAQs XRP Price Battles ResistanceWill It Break Through or Fall Back
BeginnerLevel Questions
1 What does resistance mean in crypto trading
Resistance is a price level where an asset like XRP struggles to rise above because many traders are selling to take profits or avoid losses creating a ceiling that pushes the price back down
2 Why is XRP facing resistance right now
XRP is often influenced by factors like market sentiment regulatory news overall crypto market trends and large sell orders placed at specific price points by traders
3 What happens if XRP breaks through resistance
If XRPs price closes consistently above a key resistance level on high trading volume it often signals strong bullish momentum and can lead to a significant price rally as new buyers enter the market
4 What does it mean if XRP falls back from resistance
If the price repeatedly fails to break above resistance and drops it suggests selling pressure is too strong This can lead to a price decline or a period of consolidation as buyers regroup
5 Is this resistance level unique to XRP
No all traded assets experience support and resistance However XRPs levels are heavily watched due to its high profile large holder base and sensitivity to specific regulatory developments
Advanced Strategic Questions
6 How do traders identify key resistance levels for XRP
Traders use technical analysis looking at historical price charts to spot levels where XRP has previously reversed downward Common tools include moving averages Fibonacci retracement levels and previous swing highs
7 What role does trading volume play in a resistance breakout
Volume is crucial A breakout on low volume is often a false breakout and may reverse A sustained breakout with volume significantly higher than average is considered more legitimate and likely to hold
8 Could the Ripple vs SEC lawsuit outcome override technical resistance
Absolutely A major positive or negative legal development could cause a gap in price instantly breaking through technical resistance or support levels regardless of chart patterns as it changes the fundamental outlook
9 What are common false breakout signs I should watch for
Signs include the price briefly spikes above