XRP Price at Risk: Can Support Levels Hold?

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As a seasoned crypto investor with a decade of experience under my belt, I have witnessed countless market cycles and learned to read the signs like a veteran. The recent price action of XRP has left me somewhat ambivalent, as it’s showing both promising signs of recovery and ominous hints of potential downside.

Initially, the XRP price dipped away from the $2.38 level. Currently, it’s holding steady, potentially facing difficulties in breaking past the $2.30 barrier for further growth.

  • XRP price struggled to clear the $2.40 resistance zone.
  • The price is now trading below $2.30 and the 100-hourly Simple Moving Average.
  • There is a connecting bearish trend line forming with resistance at $2.25 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might continue to move down if it stays below the $2.30 resistance.

XRP Price Faces Resistance At $2.40

Initially, the value of XRP rose from its base at $2.00, unlike Bitcoin and Ethereum. Nevertheless, sellers showed resistance around $2.38 and $2.40. A peak was reached at $2.38, and subsequently, the price began to drop again.

As a researcher, I observed a significant drop in the price of XRP, dipping below both the $2.30 and $2.25 price points. This decline also took the price below the 50% Fibonacci retracement level from the swing low at $1.955 to the high at $2.383. Additionally, a bearish trend line is forming on the hourly XRP/USD chart, with potential resistance at $2.25.

Currently, the price has dropped below $2.30 and currently sits beneath its 100-hour moving average. Potential upward momentum could encounter resistance around $2.20. Initially, a significant resistance lies at approximately $2.25.

Moving forward, a break above $2.30 could potentially push the price up to $2.40, and further gains may target $2.50 or even $2.550 in the short term. The primary challenge for bulls could be at $2.620 in the near future.

More Downsides?

If XRP doesn’t manage to surpass the $2.25 barrier, it might trigger another drop. The initial floor could be around $2.12 or the 61.8% Fibonacci retracement mark of the upward swing from the $1.955 low to the $2.383 high. A more substantial support lies at the $2.050 level.

Should a significant drop occur and the price dips beneath $2.050, it could potentially lead to further falls towards the $2.00 support level. The following substantial support lies around the $1.880 region.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.120 and $2.050.

Major Resistance Levels – $2.25 and $2.30.

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2024-12-23 07:16