XRP Price Positive Momentum Dwindles—Should Traders Prepare for Volatility?

XRP price experienced a significant rise above $2.150 but is now undergoing a correction, potentially struggling to maintain its positive trajectory.

Key Takeaways

XRP price is correcting from a high of $2.180 and is currently testing support levels.
The price remains above $2.050 and is supported by a bullish trend line.
Significant resistance is found around the $2.120 level, while initial support is near $2.070.
Indicators show a bearish momentum, with potential declines if key levels are not maintained.

XRP Price Positive Momentum Dwindles

XRP has begun to retreat from its recent gains, with the price adjusting downwards after hitting $2.180. Currently, it is hovering around the $2.050 mark as traders monitor key support and resistance levels. The continuation of this trend could lead to further fluctuations for XRP.

XRP Price Correction Overview

The XRP price has started a downward adjustment after peaking at around $2.180. This trend aligns with the price movements of major cryptocurrencies like Bitcoin and Ethereum. XRP has retraced below $2.150 and $2.120, entering a consolidation phase where buying and selling pressures are balancing out.

During this correction, the price dipped below the 50% Fibonacci retracement level calculated from the recent swing low of $2.042 to the high of $2.178. However, buyers continue to show interest, keeping the price above the important support level of $2.080. On the hourly chart, a bullish trend line is forming with support identified at $2.070.

At present, XRP is trading above $2.050 and the 100-hourly Simple Moving Average. A resurgence in buying could see the price testing the $2.120 resistance level.

XRP Price Source: XRPUSD on TradingView.com

The first notable resistance lies near $2.150. Should the price surpass this barrier, it may rise towards $2.180, and a conclusive breach above this resistance could potentially push the price towards $2.2250. Further increases could bring the price level to $2.250, with the major resistance for bulls targeting around $2.2880.

Potential for Further Losses

Should XRP fail to break through the resistance zone at $2.120, it may initiate a fresh decline. The immediate support level on the downside is around $2.070, correlating with the 76.4% Fibonacci retracement from the recent swing low to high, as well as the underlying trend line. The next significant support is positioned near the $2.050 mark.

If the price breaks below the $2.050 level and settles there, it could continue to fall towards the $2.00 threshold. Below this point, the next major support lies around $1.9850, and potential further declines could take the price down to $1.920.

Technical Analysis Indicators

Hourly MACD: The MACD for the XRP/USD pair is currently gaining strength within the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for XRP/USD is currently positioned below the 50 level.
Major Support Levels: $2.070 and $2.050.
Major Resistance Levels: $2.120 and $2.180.

This article provides an analysis of the current technical trends affecting XRP's price, guiding traders as they navigate potential market volatility.