XRP Price Battles Resistance with Signs Pointing to a Potential Decline

XRP has initiated a recovery above $2.050. While the price displays some positive movement, it may encounter difficulties breaking through the $2.10 resistance level.

Key Takeaways

XRP has started a recovery trend above the $2.050 mark.
Current trading is above $2.060 and the 100-hourly Simple Moving Average.
A bearish trend line is forming with a resistance point at $2.090 on the hourly chart for XRP/USD (data sourced from Kraken).
The price may continue its upward trajectory if it can establish itself above $2.160.

XRP Price Pops and Drops

XRP Price Struggles at Resistance Levels

XRP has found support above the $2.00 threshold and has begun a recovery wave, similar to the trends seen with Bitcoin and Ethereum. The price successfully moved above $2.020 and $2.050, thus entering a more favorable zone.

There has been a noticeable advance past the 23.6% Fibonacci retracement level of the recent downward movement from the swing high of $2.2130 to the low of $1.990. Nonetheless, the price is currently encountering resistance near the $2.10 level, compounded by a bearish trend line forming with its resistance at $2.090, reflected on the hourly chart of the XRP/USD pair.

As it stands, XRP trades above $2.060 and the 100-hourly Simple Moving Average. Should there be a new upward movement, resistance is anticipated around the $2.10 level as well as the established trend line. The immediate significant resistance sits at approximately $2.1250.

XRP Price Chart
Source: XRPUSD on TradingView.com

If XRP manages to close above $2.1250, it may advance to the $2.160 mark, aligning with the 76.4% Fibonacci retracement level from the downtrend of $2.2130 to $1.990. Following that, the next resistance level is positioned at $2.220. Any definitive move past the $2.220 resistance could propel the price toward $2.280, with further gains potentially reaching up to $2.350. The next significant challenge for bullish traders could lie near the $2.450 level.

What If Another Decline Occurs?

Should XRP fail to break the $2.10 resistance zone, it might initiate a fresh decline. The initial support on the downside is located near the $2.050 level, while further major support is identified at the $2.00 mark.

In the event of a downside breach and a closing below the $2.00 threshold, XRP may continue to decline towards $1.9650. The next notable support is around the $1.920 region; failing that, the price could further descend towards $1.850.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is currently gaining momentum within the bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD stands above the 50 level.
Major Support Levels – $2.020 and $2.00.
Major Resistance Levels – $2.10 and $2.160.

In summary, XRP's price movements indicate both potential optimism and caution, as traders watch closely to see if resistance levels hold or if a decline is on the horizon.