XRP Price Takes a 5% Hit: Is More Downside Ahead?

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As an analyst, I noticed that the XRP price didn’t manage to surge beyond $2.35 and instead started to slide. This decline has resulted in a drop of more than 5% in the price, and the current situation appears bearish below the $2.20 threshold.

  • XRP price started another decline below the $2.250 support level.
  • The price is now trading below $2.25 and the 100-hourly Simple Moving Average.
  • There was a break below a key declining channel with support at $2.235 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 $2.120 support.

XRP Price Dips Again

The cost of XRP struggled to surpass the $2.35 barrier and subsequently dropped, similar to both Bitcoin and Ethereum. A significant drop was observed beneath the $2.30 and $2.50 support thresholds.

Additionally, there was a drop below an important downward trendline with reinforcement at $2.235 on the hourly XRP/USD graph. The pair fell by more than 5% and reached as low as the $2.120 area. A bottom was established at $2.126, and currently, the price is stabilizing after the decline.

As a crypto investor, I observed that my investment managed to recoup some losses and surged above $2.15. It also touched upon the 23.6% Fibonacci retracement level of the recent slide from the peak of $2.348 down to the trough of $2.126. At this moment, my investment is trading below $2.25 and under the 100-hour Simple Moving Average.

Looking on the optimistic side, the price could encounter obstacles when approaching the $2.18 mark. The primary hurdle lies around $2.20, with another potential barrier at $2.24 or the 50% Fibonacci retracement point of the recent downswing from the peak of $2.348 to the trough of $2.126. A decisive break above the $2.24 resistance could propel the price towards the $2.30 level, which serves as another potential resistance.

Further increases could potentially push the price upwards towards the upcoming resistance levels of around $2.320 and possibly $2.350 in the short term. Overcoming $2.450 would be a significant challenge for the bullish trend in the near future.

More Losses?

Should XRP struggle to surpass the $2.24 barrier, there’s a possibility of another price drop. A potential first line of defense lies around $2.12. The significant support below that is approximately at $2.10 level.

As an analyst, if the price experiences a downturn and falls below the $2.10 mark, it could potentially proceed lower towards the $2.050 support level. Notably, the next significant support area lies around the $2.00 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 $2.100.

Major Resistance Levels – $2.180 and $2.240.

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2024-12-27 07:16