XRP extended its losses, dropping below $2.10. The price is now trying to recover but faces resistance near the $2.10 level. It had previously started a fresh decline below $2.120 and is currently trading below that level and the 100-hour Simple Moving Average. A key bearish trend line is forming with resistance at $2.10 on the hourly XRP/USD chart. The pair could decline further if it remains below $2.120.
XRP Price Attempts Recovery
XRP failed to hold above $2.20 and began a fresh decline, similar to Bitcoin and Ethereum. It dropped below $2.150 and $2.120, entering a short-term bearish zone, and even spiked below $2.050. A low was formed at $2.034, and the price is now attempting to recover. There was a move above $2.080, but the price remains below the 23.6% Fibonacci retracement level of the drop from the $2.415 high to the $2.034 low.
The price is currently trading below $2.120 and the 100-hour Simple Moving Average. Any recovery attempt may face resistance near $2.10, where a key bearish trend line is forming. The first major resistance is near $2.120. A close above $2.120 could push the price toward $2.220, which is the 50% Fibonacci retracement level of the recent decline. The next hurdle is at $2.320. A clear move above $2.320 could target $2.350, with further gains possibly testing $2.385. The next major resistance for bulls is near $2.40.
Another Decline?
If XRP fails to break above the $2.120 resistance, it could start a fresh decline. Initial support is near $2.050, followed by a major support level at $2.020. A break and close below $2.020 could lead to further declines toward $2.00. The next major support is near $1.965, below which the price could drop toward $1.880.
Technical Indicators
– Hourly MACD: The MACD for XRP/USD is losing momentum in the bearish zone.
– Hourly RSI: The RSI is below the 50 level.
– Major Support Levels: $2.050 and $2.020.
– Major Resistance Levels: $2.10 and $2.120.
Frequently Asked Questions
Frequently Asked Questions About XRP Nearing a Key Resistance Level
Beginner Questions
1 What does resistance level mean in crypto trading
A resistance level is a price point where an asset has historically struggled to rise above due to increased selling pressure Think of it as a price ceiling the market is testing
2 Why is this moment critical for XRP
If XRP breaks above this resistance it could signal strong bullish momentum and potentially lead to a significant price increase If it fails and reverses it might drop to lower support levels indicating a pause or decline in the uptrend
3 How do traders identify a key resistance level
They look at historical price charts to see where XRP has peaked and reversed multiple times in the past Common tools include trend lines moving averages and previous highs
4 What happens if XRP breaks through the resistance
A successful breakout especially on high trading volume often leads to a new upward trend as buying interest increases Traders may see it as a buy signal
5 What happens if XRP gets rejected at resistance
The price likely falls back down possibly to a previous support level This rejection can trigger selling as traders might interpret it as a sign the rally is losing strength
IntermediateAdvanced Questions
6 What factors could help XRP break this resistance
Positive catalysts like favorable regulatory news increased adoption a strong overall crypto market rally or a surge in trading volume could provide the needed momentum
7 What are common signs of a fake breakout
A fake breakout occurs when price briefly moves above resistance but quickly falls back below it often on low volume It can trap bullish traders Confirmation with sustained price action and high volume is key
8 How do traders manage risk around key resistance levels
Many use stoploss orders below the breakout point to limit losses if the breakout fails They might also wait for a confirmed close above resistance before entering a position
9 Could this resistance level relate to XRPs legal situation
Yes Major resistance often aligns with price levels reached before negative news A breakout could reflect growing market confidence that legal overhangs are resolving