The XRP price started a new decline below the $2,350 zone. The price has retested the USD 2.20 support zone and is currently attempting a recovery wave.
- The XRP price started a new decline from the $2,720 zone.
- The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance at $2.45 on the hourly chart of the XRP/USD pair (Kraken data source).
- The pair could rise again if it breaks the $2.40 resistance.
XRP price plunges to $2.20
The XRP price failed to start a new increase above the $2.50 level and started a new decline, like Bitcoin and Ethereum. There was a move below the USD 2.45 and USD 2.40 levels.
The price fell by more than 5% and there was a move below the USD 2,320 support. Finally, the price peaked below the $2.20 support. A low was formed at $2,171 and the price is now correcting losses. There was a move above the USD 2,250 level.
The price has crossed the 23.6% Fib retracement level of the downward move from the $2,720 swing high to the $2,171 low. The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
On the upside, the price could encounter resistance near the USD 2.40 level. The first major resistance is around the $2,450 level. A connecting bearish trendline is also forming with resistance at $2.45 on the hourly chart of the XRP/USD pair. The trendline is close to the 50% Fib retracement level of the downward move from the $2,720 swing high to the $2,171 low.
The next resistance is $2.50. A clear move above the USD 2.50 resistance could send the price towards the USD 2.55 resistance. Any further gains could send the price towards the USD 2,620 or even USD 2.80 resistance in the near term. The next big hurdle for the bulls could be $3.00.
Are dips supported?
If XRP fails to break the USD 2.40 resistance zone, it could trigger another decline. The initial downside support is near the $2.25 level. The next major support is near the $2.20 level.
If there is a downside break and a close below the $2.20 level, the price could continue falling towards the $2.050 support. The next major support is near the $2.00 zone.
Technical indicators
Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.
Major support levels – USD 2.20 and USD 2.050.
Major resistance levels – $2.40 and $2.450.
