After struggling to maintain its momentum above the $3.30 level, XRP has entered a correction phase. The price is now hovering below $3.20, with critical support levels near $3.00. This dip has sparked discussions on whether XRP is undergoing a healthy pullback or signaling a potential reversal.
XRP Price Movement Analysis
XRP recently experienced an upward move from the $3.120 support zone, briefly climbing above $3.250. However, bearish pressure emerged near the $3.285 mark, causing the price to retrace.
The decline saw XRP dip below the 50% Fibonacci retracement level of its rise from the $3.012 swing low to the $3.285 high. Additionally, the breakdown of a bullish trend line with support at $3.1450 on the hourly chart added to bearish sentiment. Currently, XRP trades below the 100-hourly Simple Moving Average (SMA) and the $3.20 resistance.
Despite this downturn, XRP is holding firm at the 61.8% Fibonacci retracement level of its recent upswing.
Key Resistance Levels to Watch
If XRP attempts another rally, it may face resistance at:
- $3.150: Initial hurdle for bulls.
- $3.20: A crucial resistance zone.
- $3.250: Breaking above this level could signal renewed bullish momentum.
A successful push above $3.250 could pave the way for XRP to retest the $3.30 level and potentially target $3.4250 or even $3.450. If the bulls gain further traction, the next significant barrier lies at $3.50.
Risk of Further Decline
Failure to clear the $3.20 resistance zone could result in additional losses. Key support levels on the downside include:
- $3.120: Initial support.
- $3.00: A critical level to prevent a larger decline.
A break below $3.00 could expose XRP to further downside risks, with support at $2.880 and potentially $2.750.
Technical Indicators
- MACD (Hourly): Gaining momentum in the bearish zone.
- RSI (Hourly): Below the 50 level, indicating bearish sentiment.
- Major Support Levels: $3.120 and $3.00.
- Major Resistance Levels: $3.20 and $3.250.
Conclusion
XRP’s price correction reflects a battle between bulls and bears, with $3.20 acting as a pivotal resistance. Whether the current dip is a mere pullback or the start of a larger reversal will depend on XRP’s ability to hold above $3.00 and reclaim higher levels.
