XRP extended its decline, dropping below $2.120. The price is now trying to recover but faces resistance near $2.20. Currently, XRP is trading below both $2.20 and the 100-hour Simple Moving Average. On the hourly chart, the XRP/USD pair managed to break above a bearish trend line that had been holding at $2.10. If the price remains below $2.20, it could continue to fall.
XRP failed to hold above $2.25 and began to drop, following a similar pattern to Bitcoin and Ethereum. The decline pushed it below $2.20 and $2.150, entering a short-term bearish zone, with a brief dip under $2.10. A low was established at $2.063 before the price started to recover, climbing back above $2.120. The pair also broke the bearish trend line at $2.10 and tested the 23.6% Fibonacci retracement level of the drop from the $2.416 high to the $2.063 low.
For any upward move, initial resistance is near $2.1680, followed by the key $2.20 level. A sustained close above $2.20 could push the price toward $2.240, which aligns with the 50% Fibonacci retracement level. Further resistance lies at $2.280, $2.320, and $2.350, with a major hurdle around $2.40.
If XRP fails to break above the $2.20 resistance, it could resume its decline. Initial support is near $2.080, with stronger support at $2.050. A break and close below $2.050 might lead to further losses toward $2.00. The next significant support levels are around $1.9650 and potentially $1.880.
Technical Indicators:
– Hourly MACD: Losing momentum in the bearish zone.
– Hourly RSI: Currently below 50.
– Major Support Levels: $2.080 and $2.050.
– Major Resistance Levels: $2.1680 and $2.240.
Frequently Asked Questions
FAQs XRP Price Seeks Gains as Resistance Holds the Market in Limbo
BeginnerLevel Questions
1 What does resistance mean in this context
Resistance is a key concept in technical analysis It refers to a specific price level where selling pressure has historically been strong enough to prevent the price from rising further Think of it as a price ceiling the asset struggles to break through
2 Why is XRPs price in limbo
The price is in limbo because its caught between significant support and resistance Its bouncing around in this range unable to make a decisive move upward to start a new rally or downward into a clear correction
3 What needs to happen for XRP to break out and gain
For XRP to see sustained gains it needs a strong surge in buying volume to push its price and hold it above the key resistance level This often requires a major catalyst like positive regulatory news a broader crypto market rally or a significant development in Ripples business
4 Is this a bad time to buy XRP
It depends on your strategy For shortterm traders this rangebound movement can be risky and frustrating For longterm investors periods of consolidation can sometimes be accumulation zones but its crucial to do your own research and never invest more than you can afford to lose
Advanced Strategic Questions
5 How do traders identify this specific resistance level
Traders identify resistance by analyzing historical price charts They look for price peaks where XRP has repeatedly reversed downward Common tools include horizontal lines at previous highs moving averages and Fibonacci retracement levels drawn from past swings
6 What is a fakeout or bull trap and why is it a risk here
A fakeout occurs when the price briefly breaks above resistance luring in buyers only to quickly reverse and fall back below it This is a major risk in limbo markets because the initial breakout lacks conviction trapping bullish traders in losing positions
7 Beyond price what onchain or fundamental metrics should I watch
Watch for