XRP Analysis: Recovery Encounters Technical Resistance
XRP shows signs of recovery after a period of intense selling pressure. The 4-hour chart indicates that the price has stabilized above the average of the Bollinger Bands, currently at $2.09, after falling below the $2.00 mark earlier in the week. The Bollinger Bands, a technical indicator that measures the volatility of the asset, are widening, suggesting an increase in volatility and the strength of the recent upward movement.
Additionally, the Relative Strength Index (RSI), which assesses the strength and pace of price movements, is at 62.30. This level indicates a healthy upward trend, but is close to the overbought zone (above 70), which may limit the advance in the upcoming candles unless there is strong buying volume.
Short-term Resistance May Halt Advancement
Despite the momentary optimism, XRP faces significant resistance in the $2.27 range, represented by the upper band of the Bollinger Bands. The inability to break this zone in recent hours demonstrates that buyers are struggling to push the asset beyond this level.
Maintaining above the average of the bands and the RSI above 60 are indications that market sentiment remains positive in the short term. However, the trading volume — although it increased at the beginning of the upward movement — is already showing signs of weakening, which could result in a slight correction or lateral consolidation.
If XRP manages to break the current resistance, the next technical target is near $2.35, where there were previous consolidations. On the other hand, if it loses strength and falls back below $2.09, the immediate support is around $1.91, represented by the lower band.