XRP Price Faces Pressure – Another Dip Raises Concerns Of Extended Decline

[Ben Graham]

XRP price attempted a recovery wave above the $2.850 zone but failed. The price is again moving lower and might decline again below the $2.720 zone.

• XRP price is moving lower below the $2.850 support zone.
• The price is now trading below $2.840 and the 100-hourly Simple Moving Average.
• There was a break below a connecting bullish trend line with support at $2.850 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could continue to move down if it dips below $2.720.

XRP Price Dips Below Support

XRP price attempted a recovery wave above the $2.90 level, beating Bitcoin and Ethereum. The price was able to surpass the $2.90 and $2.92 resistance levels before the bears appeared.

A high was formed at $2.995 and the price started a fresh decline. There was a drop below the $2.90 support. Besides, there was a break below a connecting bullish trend line with support at $2.850 on the hourly chart of the XRP/USD pair.

A low was formed at $2.724 and the price is now consolidating below the 23.6% Fib retracement level of the recent decline from the $2.995 swing high to the $2.724 low.

The price is now trading below $2.850 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.788 level. The first major resistance is near the $2.850 level and the 50% Fib retracement level of the recent decline from the $2.995 swing high to the $2.724 low.

A clear move above the $2.850 resistance might send the price toward the $2.920 resistance. Any more gains might send the price toward the $2.950 resistance. The next major hurdle for the bulls might be near $3.00.

Another Decline?

If XRP fails to clear the $2.850 resistance zone, it could continue to move down. Initial support on the downside is near the $2.720 level. The next major support is near the $2.680 level.

If there is a downside break and a close below the $2.680 level, the price might continue to decline toward $2.6150. The next major support sits near the $2.60 zone, below which the price could gain bearish momentum.

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 – $2.720 and $2.680.

Major Resistance Levels – $2.850 and $2.920.