XRP market is trying to initiate a new round of increase, attempting to break through the $2.550 mark. However, the current price is encountering resistance near $2.650, and it may face correction pressure in the short term.
XRP has failed to effectively maintain above $2.70, subsequently experiencing a certain degree of pullback. The current quote has fallen below $2.60 and the 100-hour simple moving average. On the hourly chart of XRP/USD, a resistance line located near $2.65 can be observed as a short-term downward trend line (data source: Kraken). If this currency pair can stay above the support level of $2.5120, there is still a possibility of resuming the upward trend later.
XRP price holds key support
XRP entered a correction after forming a short-term high around $2.69, with the trend similar to Bitcoin and Ethereum. The price broke below $2.65 and $2.62 successively.
The current price has fallen below the 23.6% Fibonacci retracement level of the recent upward trend from a low of $2.327 to a high of $2.697. Although it briefly fell below $2.55, it still found support above $2.50. Meanwhile, the descending trend line resistance on the XRP/USD hourly chart is currently at $2.65.
The current price is running below $2.60 and the 100-hour moving average. If the price strengthens again, initial resistance is expected around $2.620. The main resistance area is at $2.650, which is where the trend line is located. If this area can be broken, the price is expected to further test $2.680.
If a clear break above $2.680 resistance occurs, the next target will be $2.720. Continuing upwards may challenge the $2.750 resistance area. If bullish momentum continues, the subsequent important resistance level will be around $2.80.
Is there a risk of a pullback?
If XRP fails to break the $2.650 resistance area, it may face further pullback. Initial support is around $2.550, with a more critical support level at $2.5120, which is also close to the 50% Fibonacci retracement level of the aforementioned upward wave (from a low of $2.327 to a high of $2.697).
If the price breaks and closes below $2.5120, it may continue to test $2.468. The subsequent main support is in the $2.420 area; if this level is lost, the price may further approach $2.40.
Technical indicator analysis
Hourly chart MACD - The MACD for XRP/USD is currently still in negative territory, but the downward momentum has weakened.
Hourly chart RSI - The Relative Strength Index (RSI) is currently below 50, indicating that the bears are temporarily in control.
Key support levels - $2.550 and $2.5120.
Key resistance levels - $2.620 and $2.650.
