XRP Price Corrects: Limited Downside Keeps Bulls Optimistic

XRP price failed to surpass $2.50 and corrected some gains. The price is now consolidating and aiming for a fresh increase above the $2.40 resistance.

• 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

XRP price failed to extend gains above the $2.48 and $2.50 resistance levels. The price reacted to the downsides, but losses were limited compared to Bitcoin and Ethereum . There was a move below the $2.40 and $2.32 support levels.

Besides, there was a break below a short-term rising channel with support at $2.390 on the hourly chart of the XRP/USD pair. The last swing low was formed at $2.26, and the price is now consolidating. There was a move above the $2.32 level. The price cleared the 23.6% Fib retracement level of the recent drop from the $2.47 swing high to the $2.26 low.

The price is now trading below $2.350 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.365 level or the 50% Fib retracement level of the recent drop from the $2.47 swing high to the $2.26 low.

Source: XRPUSD on TradingView.com

The first major resistance is near the $2.40 level. The next resistance is $2.42. A clear move above the $2.42 resistance might send the price toward the $2.50 resistance. Any more gains might send the price toward the $2.650 resistance or even $2.6650 in the near term. The next major hurdle for the bulls might be $2.720.

More Losses?

If XRP fails to clear the $2.350 resistance zone, it could start another decline. Initial support on the downside is near the $2.300 level. The next major support is near the $2.250 level.

If there is a downside break and a close below the $2.250 level, the price might continue to decline toward the $2.20 support. The next major support sits near the $2.120 zone.

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.