As a seasoned analyst with years of experience observing the cryptocurrency market, I must say that the recent dive in XRP price to $2.20 is not entirely surprising. While the digital asset has shown significant growth potential, it’s essential to remember that the crypto market is inherently volatile and unpredictable.
Initially, the value of XRP dipped beneath 2.350 dollars, triggering a downward trend. It subsequently tested the 2.20 dollars support level but now seems to be trying to regain some ground.
- XRP price started a fresh decline from the $2.720 zone.
- The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $2.45 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair might start another increase if it clears the $2.40 resistance.
XRP Price Dives To $2.20
The cost of XRP didn’t manage to surge past $2.50 initially and subsequently dipped, similar to Bitcoin and Ethereum. It also dropped beneath the $2.45 and $2.40 support levels.
The cost dropped more than 5% and subsequently dipped below the $2.320 resistance point. In the end, it plummeted even further below the $2.20 support level. A new low was established at $2.171, and now there appears to be an attempt to recoup losses. The price has since risen above the $2.250 mark.
As a researcher, I’ve observed that the price has breached the 23.6% Fibonacci retracement level, which represents a significant resistance point from the downward move ranging between the peak at $2.720 and the trough at $2.171. Currently, the price is hovering below the $2.50 mark and also falls short of the 100-hour Simple Moving Average.
Positively, the price could encounter a roadblock around the $2.40 mark. Significant resistance is anticipated near $2.450. Additionally, a bearish trend line is emerging with resistance at approximately $2.45 on the hourly XRP/USD chart. This trend line aligns closely with the 50% Fibonacci retracement level of the downward journey from the $2.720 peak to the $2.171 trough.
Moving forward, a break above $2.50 could propel the price towards the next potential obstacle at $2.55. If it continues to rise, the price may approach the resistance levels of $2.620 or even $2.80 in the short term. However, the significant challenge for the bulls could come at $3.00 in the long run.
Are Dips Supported?
If XRP doesn’t manage to break through the $2.40 barrier, there’s a chance it might slide again. A potential floor for this drop could be around $2.25. The next substantial support level would be approximately $2.20.
Should a drop occur with the price breaking down and falling beneath the $2.20 mark, it could potentially proceed to decrease further towards the $2.050 support level. A significant support level can be found in the vicinity of the $2.00 area.
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 – $2.20 and $2.050.
Major Resistance Levels – $2.40 and $2.450.
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2024-12-19 07:16