$XRP After failing to hold above the resistance level of 3,20 USD, the price of XRP has begun a downward correction, breaking through several important support levels. However, the bulls are currently trying to establish a new recovery from the strong support area around 3,00 USD. Can XRP bounce back or will it continue to weaken in the near future?
XRP is Striving to Recover from the 3,00 USD Level
The price of XRP recently dropped below important support levels such as 3,120 USD and 3,080 USD. The bears even pushed the price through the support level of 3,020 USD before buying pressure appeared around the 3,00 USD mark. Here, a short-term bottom formed at 2,999 USD and the price is currently attempting to recover.
In the recent upward momentum, XRP has surpassed the 3,050 USD and 3,080 USD levels, while reclaiming 23.6% of the Fibonacci retracement from the peak of 3,330 USD to the bottom of 2,999 USD. However, the price is still trading below 3,150 USD and is under the 100-hour simple moving average (SMA 100), indicating that selling pressure is still present.
Notably, a downtrend line is forming with resistance around the 3,150 USD level on the hourly chart of the XRP/USD pair (data source from Kraken). This will be the first short-term barrier that the bulls need to overcome if they want to bring the price back into an upward trend.
Important Resistance and Support Levels
Nearest resistance: 3,150 USD (trendline area)
Next important resistance: 3,1650 USD
If breaking above 3,1650 USD: The price could head towards the 3,20 USD level, followed by higher thresholds at 3,25 USD and 3,30 USD.
Greater resistance: 3,35 USD – a level that needs to be surpassed to confirm a stronger upward momentum in the short term.
Bearish Scenario If Not Surpassing 3,1650 USD
If XRP cannot surpass the important resistance level of 3,1650 USD, it is highly likely that the price will turn back down. Initial support will be at the 3,080 USD area. If it continues to decline and breaks the psychological support level of 3,00 USD, XRP could drop further to the levels:
Nearest support: 2,920 USD
Stronger support: 2,850 USD – where the bulls may attempt to establish a mid-term bottom.
Technical Indicators
MACD (1 Hour Frame): Losing negative momentum, indicating a slight recovery potential in the short term.
RSI (Relative Strength Index): Currently above 50, indicating a balance between buyers and sellers but the trend is still unclear.
Conclusion
The price of XRP is at a decisive moment. A clear breakout above the 3,1650 USD level could trigger a strong rally back towards 3,20 USD and beyond. Conversely, if it continues to be rejected at the current resistance area, the possibility of revisiting the 3,00 USD zone and even 2,850 USD is entirely possible.
