XRP Price Recovery Looks Fragile—Can Bulls Break the Cap?

[Ben Graham]

XRP price started a recovery wave above $1.90. The price is now consolidating and might struggle to clear the $2.00 resistance.

• XRP price started a recovery wave above the $1.9050 zone.
• The price is now trading below $2.00 and the 100-hourly Simple Moving Average.
• There is a bearish trend line forming with resistance at $1.9520 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could continue to move up if it settles above $2.00.

XRP Price Faces Resistance

XRP price remained supported above $1.850 and started a recovery wave, like Bitcoin and Ethereum. The price was able to climb above $1.880 and $1.90 to enter a short-term positive zone.

There was also a move above the 23.6% Fib retracement level of the downward move from the $2.047 swing high to the $1.850 low. The bears defended a close above the $1.950 level and the price reacted to the downside. There is also a bearish trend line forming with resistance at $1.9520 on the hourly chart of the XRP/USD pair.

The price is now trading below $1.950 and the 100-hourly Simple Moving Average. If there is a fresh upward move, the price might face resistance near the $1.950 level and the trend line. It coincides with the 50% Fib retracement level of the downward move from the $2.047 swing high to the $1.850 low.

The first major resistance is near the $2.00 level. A close above $2.00 could send the price to $2.050. The next hurdle sits at $2.120. A clear move above the $2.120 resistance might send the price toward the $2.20 resistance. Any more gains might send the price toward the $2.220 resistance. The next major hurdle for the bulls might be near $2.250.

Another Drop?

If XRP fails to clear the $2.00 resistance zone, it could start a fresh decline. Initial support on the downside is near the $1.90 level. The next major support is near the $1.850 level.

If there is a downside break and a close below the $1.850 level, the price might continue to decline toward $1.820. The next major support sits near the $1.80 zone, below which the price could continue lower toward $1.7650.

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 above the 50 level.

Major Support Levels – $1.90 and $1.850.

Major Resistance Levels – $1.950 and $2.00.