XRP Price Pulls Back Slightly — Market Still Poised for Fresh Advance

[Ben Graham]

XRP price started a decent increase above $2.50. The price is now correcting some gains might aim for another increase if it stays above the $2.320 level.

• XRP price started a downside correction from the $2.580 zone.
• The price is now trading near $2.40 and the 100-hourly Simple Moving Average.
• There is a short-term bearish trend line forming with resistance at $2.440 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could continue to move up if it clears $2.50.

XRP Price Trims Some Gains

XRP price started a decent upward move above $2.420 and $2.50, like Bitcoin and Ethereum. The price gained pace for a clear move above the $2.550 resistance.

A high was formed at $2.580 and the price started a downside correction. There was a move below the $2.50 level. The price dipped below the 50% Fib retracement level of the upward move from the $2.240 swing low to the $2.580 high.

The price is now trading near $2.40 and the 100-hourly Simple Moving Average. If there is a fresh upward move, the price might face resistance near the $2.450 level. There is also a short-term bearish trend line forming with resistance at $2.440 on the hourly chart of the XRP/USD pair.

The first major resistance is near the $2.50 level, above which the price could rise and test $2.550. A clear move above the $2.550 resistance might send the price toward the $2.620 resistance. Any more gains might send the price toward the $2.680 resistance. The next major hurdle for the bulls might be near $2.750.

More Losses?

If XRP fails to clear the $2.50 resistance zone, it could start a fresh decline. Initial support on the downside is near the $2.3650 level or the 61.8% Fib retracement level of the upward move from the $2.240 swing low to the $2.580 high. The next major support is near the $2.320 level.

If there is a downside break and a close below the $2.320 level, the price might continue to decline toward $2.250. The next major support sits near the $2.20 zone, below which the price could continue lower toward $2.120.

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 – $2.3650 and $2.320.

Major Resistance Levels – $2.450 and $2.50.