XRP price saw a decent rise above $2.150 before entering a corrective phase. The price is now testing lower levels and may find it challenging to maintain positive momentum.
After starting a downside correction from the $2.180 zone, XRP dipped below $2.150 and $2.120, entering a consolidation phase. It even fell below the 50% Fibonacci retracement level of the recent upward move from $2.042 to $2.1778. However, buyer interest remained above the $2.080 support level.
Currently, XRP is trading above $2.050 and the 100-hour Simple Moving Average. A bullish trend line is also forming with support around $2.070 on the hourly chart. For another upward move to begin, the price needs to clear the $2.120 resistance. If successful, the next key resistance levels are near $2.150 and $2.180. A sustained break above $2.180 could push the price toward $2.2250, with further hurdles near $2.250 and $2.2880.
On the downside, if XRP fails to move above $2.120, it could resume its decline. Immediate support lies near $2.070, which aligns with the trend line and the 76.4% Fibonacci retracement level. The next major support is at $2.050. A break and close below this level might lead to further declines toward $2.00, with additional support near $1.9850 and potentially $1.920.
Technical indicators show the hourly MACD gaining momentum in bearish territory, while the RSI is currently below 50, indicating weakening momentum.
Key Support Levels: $2.070, $2.050
Key Resistance Levels: $2.120, $2.180
Frequently Asked Questions
FAQs XRPs Price Rally Loses MomentumIs Volatility on the Horizon
BeginnerLevel Questions
1 What does it mean that XRPs price rally is losing momentum
It means the strong upward price movement XRP was experiencing has slowed down or stalled The buying pressure that was pushing the price up is weakening and the price may be starting to consolidate or even dip
2 What is volatility in crypto
Volatility refers to how much and how quickly an assets price changes High volatility means the price can swing dramatically up or down in a short period Its common in cryptocurrencies and indicates both high risk and potential opportunity
3 Why did XRPs price rally in the first place
The recent rally was primarily driven by a major legal victory for Ripple against the US Securities and Exchange Commission The court ruled that XRP is not a security when sold to the general public which reduced regulatory uncertainty and boosted investor confidence
4 Is it normal for a crypto rally to slow down
Yes absolutely Its very rare for any asset to go straight up indefinitely Periods of rapid growth are often followed by consolidation pullbacks or corrections as traders take profits and the market finds a new balance
5 Should I be worried if I hold XRP
Not necessarily Price pullbacks are a normal part of market cycles Worry should be based on your investment strategy if youre a longterm holder shortterm momentum shifts are less critical If youre a shortterm trader its a signal to reassess your strategy and risk management
Intermediate Advanced Questions
6 What specific factors could be causing this loss of momentum
Several factors could be at play
ProfitTaking Early buyers from the rally are selling to lock in gains
MarketWide Conditions Broader crypto or stock market downturns can pull XRP down with them
Overbought Conditions Technical indicators may have shown the price rose too fast leading to a natural cooldown