XRP has mounted a recovery above $2.850 following a recent decline to support levels near $2.720, but the cryptocurrency now confronts significant resistance zones that could determine its near-term price direction. The digital asset trades above its 100-hourly simple moving average with a bullish trend line providing support at $2.8320, according to data from Kraken exchange.
What to Know:
- XRP recovered above $2.850 after finding support near $2.720 and $2.770, mirroring gains in Bitcoin and Ethereum
- The cryptocurrency faces immediate resistance at $2.920 and $2.950, with a break above potentially opening a path toward $3.00
- Technical indicators show the hourly MACD gaining momentum in bullish territory while the RSI has moved above 50
Recovery Wave Meets Technical Barriers
XRP initiated its recovery after establishing support above $2.720 and $2.770, following similar movements in Bitcoin and Ethereum markets. The cryptocurrency pushed through resistance at $2.80 and $2.850 before stalling near $2.920.
The recovery surpassed the 61.8% Fibonacci retracement level of the decline from a $2.995 swing high to the $2.70 low.
Bulls drove the price toward $2.920 before encountering selling pressure.
A connecting bullish trend line has formed on the hourly chart with support established at $2.8320.
The immediate resistance stands near $2.925, which aligns with the 76.4% Fibonacci retracement level of the same downward wave. A sustained move above this level could challenge the first major resistance zone near $2.950.
Price Trajectory Depends on Key Levels
A clear break above $2.950 would likely propel XRP toward the $3.00 psychological barrier. Further gains could extend to $3.050, with the next significant hurdle positioned near $3.120. The bullish case requires XRP to maintain its position above the trend line support and overcome resistance zones that have capped recent advances.
If XRP fails to breach the $2.920 resistance zone, a fresh decline could materialize.
Initial support on the downside sits at $2.850, followed by the trend line at $2.8320. A break below $2.8320 would likely accelerate losses toward $2.770, with the next major support at $2.720. Below that level, XRP could decline toward $2.650.
Technical indicators currently favor buyers. The hourly MACD for XRP/USD is gaining pace in the bullish zone, while the RSI has climbed above the neutral 50 level. These indicators suggest growing bullish momentum, though they alone cannot guarantee continued upward movement.
The Simple Moving Average calculates the average price over a specified period, helping traders identify trend direction. Fibonacci retracement levels are horizontal lines that indicate potential support and resistance levels based on the Fibonacci sequence. The MACD (Moving Average Convergence Divergence) measures momentum by comparing two moving averages, while the RSI (Relative Strength Index) gauges whether an asset is overbought or oversold on a scale of 0 to 100.
Closing Thoughts
XRP's near-term price action hinges on its ability to clear resistance near $2.920 and $2.950, with a break above potentially opening a path toward $3.00 and higher levels. Failure to overcome these barriers could result in a retreat toward support zones between $2.8320 and $2.720.
