XRP Price Coils Below Resistance — Bulls Prepare For Possible Upside Explosion

[Redator]

XRP price started a consolidation phase below $2.60. The price is now showing positive signs but faces a major resistance near $2.50 and $2.60.

• XRP price is attempting a recovery wave above the $2.420 zone.
• The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2.50 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair could start a fresh surge if it clears the $2.60 resistance.

XRP Price Faces Key Resistance

XRP price found support and started a strong recovery wave above $2.30, like Bitcoin and Ethereum. The price was able to climb above the $2.350 and $2.40 levels to enter a positive zone.

The bulls were able to push the price above the 61.8% Fib retracement level of the downward wave from the $3.05 swing high to the $1.40 swing low. However, the bears are still active near the $2.550 and $2.60 levels. Besides, there is a key bearish trend line forming with resistance at $2.50 on the hourly chart of the XRP/USD pair.

The price is now trading below $2.50 and the 100-hourly Simple Moving Average. If there is a fresh upward move, the price might face resistance near the $2.50 level and the trend line.

The first major resistance is near the $2.60 level, above which the price could rise and test the 76.4% Fib retracement level of the downward wave from the $3.05 swing high to the $1.40 swing low at $2.660. A clear move above the $2.660 resistance might send the price toward the $2.750 resistance. Any more gains might send the price toward the $2.780 resistance. The next major hurdle for the bulls might be near $2.820.

Another Drop?

If XRP fails to clear the $2.50 resistance zone, it could start a fresh decline. Initial support on the downside is near the $2.40 level. The next major support is near the $2.30 level.

If there is a downside break and a close below the $2.30 level, the price might continue to decline toward $2.2420. The next major support sits near the $2.220 zone, below which the price could continue lower toward $2.120.

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 – $2.40 and $2.30.

Major Resistance Levels – $2.50 and $2.60.