XRP Price Cuts Back Gains – Correction or Consolidation?

[Ben Graham]

XRP price struggled to continue higher above the $3.10 zone. The price is trimming gains and might decline below the $2.90 support.

• XRP price is correcting gains from the $3.10 zone.
• The price is now trading below $2.980 and the 100-hourly Simple Moving Average.
• There was a break below a bullish trend line with support at $3.060 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could start another increase if it stays above the $2.880 zone.

XRP Price Dips Again

XRP price struggled to continue higher above the $3.10 resistance zone, like Bitcoin and Ethereum. The price formed a short-term top and started a fresh decline below the $3.00 level.

There was a break below a bullish trend line with support at $3.060 on the hourly chart of the XRP/USD pair. The pair dipped below the 23.6% Fib retracement level of the upward move from the $2.730 swing low to the $3.106 high.

The price is now trading below $3.00 and the 100-hourly Simple Moving Average. The bulls are now active near the 50% Fib retracement level of the upward move from the $2.730 swing low to the $3.106 high.

On the upside, the price might face resistance near the $2.950 level. The first major resistance is near the $3.00 level. A clear move above the $3.00 resistance might send the price toward the $3.0650 resistance. Any more gains might send the price toward the $3.10 resistance or even $3.120 in the near term. The next major hurdle for the bulls might be near the $3.20 zone.

More Losses?

If XRP fails to clear the $3.00 resistance zone, it could start another decline. Initial support on the downside is near the $2.920 level. The next major support is near the $2.880 level.

If there is a downside break and a close below the $2.880 level, the price might continue to decline toward the $2.810 support. The next major support sits near the $2.750 zone where the bulls might take a stand.

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 – $2.920 and $2.880.

Major Resistance Levels – $3.00 and $3.10.