XRP Price Corrects After Strong Rally — Support Levels in Focus

[Redator]

XRP price started a fresh increase and traded above the $3.00 zone. The price is now correcting gains and might test the $2.75 support zone.

• XRP price started a fresh increase above the $2.850 zone.
• The price is now trading above $2.80 and the 100-hourly Simple Moving Average.
• There is a key bullish trend line forming with support at $2.820 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could start another increase if it stays above the $2.750 zone.

XRP Price Rallies Over 5%

XRP price started a fresh increase after it settled above the $2.650 level, like Bitcoin and Ethereum. The price was able to climb above the $2.80 resistance level.

The recent move was positive and the bulls pushed the price above the $3.00 level. A high was formed at $3.0324 and the price is now correcting gains. There was a move below the 50% Fib retracement level of the upward move from the $2.660 swing low to the $3.0324 high.

The price is now trading above $2.80 and the 100-hourly Simple Moving Average. Besides, there is a key bullish trend line forming with support at $2.820 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $2.920 level. The first major resistance is near the $2.950 level. A clear move above the $2.950 resistance might send the price toward the $3.020 resistance. Any more gains might send the price toward the $3.080 resistance or even $3.120 in the near term. The next major hurdle for the bulls might be near the $3.20 zone.

More Downsides?

If XRP fails to clear the $2.950 resistance zone, it could start another decline. Initial support on the downside is near the $2.820 level and the trend line zone. The next major support is near the $2.80 level and the 76.4% Fib retracement level of the upward move from the $2.660 swing low to the $3.0324 high.

If there is a downside break and a close below the $2.80 level, the price might continue to decline toward the $2.750 support. The next major support sits near the $2.650 zone.

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 – $2.820 and $2.750.

Major Resistance Levels – $2.950 and $3.020.