XRP Price Corrects: Limited Downside Keeps Bulls Optimistic

As a researcher, I’ve observed that despite my efforts to push XRP‘s value beyond $2.50, it appears we’ve hit a roadblock for now. However, the current trend suggests consolidation, with an aim to break through the resistance at $2.40 and potentially initiate a new upward swing.

  • XRP price is struggling to gain pace for a move above the $2.40 zone.
  • The price is now trading below $2.350 and the 100-hourly Simple Moving Average.
  • There was a break below a short-term rising channel with support at $2.390 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might start a fresh increase if it stays above the $2.250 support.

XRP Price Dips Below $2.32

The price of XRP did not manage to surge beyond the barriers at $2.48 and $2.50, instead, it dipped following resistance. Compared to Bitcoin and Ethereum, its decline was less severe. Moreover, it fell below the support levels of $2.40 and $2.32.

Additionally, below a temporary rising trendline with a base at $2.390 on an hourly XRP/USD chart, we observed a break. The previous bottom was set at $2.26, and the price is currently stabilizing. There was an upward surge above the $2.32 mark. Moreover, the price surpassed the 23.6% Fibonacci retracement level from the recent decline spanning from the $2.47 peak to the $2.26 trough.

Currently, the price is dipping below the $2.350 mark and under the 100-hour Simple Moving Average. On the optimistic side, potential obstacles for the price increase may be encountered around the $2.365 level or at the 50% Fibonacci retracement point of the recent downtrend from the $2.47 peak to the $2.26 trough.

Initial significant obstacle lies around the $2.40 mark. Following that, a potential barrier is at $2.42. A strong push beyond the $2.42 barrier could propel the price towards the next resistance level of $2.50. Further advancements may take the price to the $2.650 or even $2.6650 resistance levels in the short term. The main challenge for further bullish momentum might be at $2.720.

More Losses?

If XRP doesn’t manage to surpass the $2.350 barrier, there might be a new drop in price. A potential first line of defense on the downside lies around $2.300. Below that, significant support can be found near $2.250.

Should a drop occur followed by a break below the $2.250 mark and subsequent closing below it, the price trend could potentially continue moving downwards towards the $2.20 level, acting as a supportive floor. The next significant support area can be found around the $2.120 region.

Technical Indicators

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

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

Major Support Levels – $2.30 and $2.250.

Major Resistance Levels – $2.3650 and $2.400.

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2025-01-08 07:39