XRP Price Moves Sideways, Setting Up a Potential Dip-Buy Zone

[Ben Graham]

XRP price started a strong increase above $2.30. The price is now consolidating gains and might aim for more gains if it stays above the $2.20 zone.

• XRP price started a fresh increase above the $2.250 zone.
• The price is now trading above $2.220 and the 100-hourly Simple Moving Average.
• There is a bullish trend line forming with support at $2.210 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could continue to move up if it settles above $2.330.

XRP Price Corrects Some Gains

XRP price started a major upward move above $2.20 and $2.250, beating Bitcoin and Ethereum. The price gained pace for a clear move above the $2.30 resistance.

The bulls even pumped the price above the $2.40 zone. A high was formed at $2.416 and the price started a downside correction. There was a move below $2.35 and $2.30. However, the bulls were active near $2.20. A low was formed at $2.206, and the price is now attempting a fresh increase.

There was a move to the 50% Fib retracement level of the downside correction from the $2.416 swing high to the $2.206 low. The price is now trading above $2.220 and the 100-hourly Simple Moving Average. Besides, there is a bullish trend line forming with support at $2.210 on the hourly chart of the XRP/USD pair.

If there is a fresh upward move, the price might face resistance near the $2.30 level. The first major resistance is near the $2.330 level or the 61.8% Fib retracement level of the downside correction from the $2.416 swing high to the $2.206 low, above which the price could rise and test $2.40.

A clear move above the $2.40 resistance might send the price toward the $2.420 resistance. Any more gains might send the price toward the $2.450 resistance. The next major hurdle for the bulls might be near $2.50.

More Downsides?

If XRP fails to clear the $2.330 resistance zone, it could start a fresh decline. Initial support on the downside is near the $2.220 level. The next major support is near the $2.20 level.

If there is a downside break and a close below the $2.20 level, the price might continue to decline toward $2.1550. The next major support sits near the $2.120 zone, below which the price could continue lower toward $2.080.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.220 and $2.20.

Major Resistance Levels – $2.330 and $2.40.