XRP Price Builds Base—Short-Term Rally May Be Brewing

XRP price started a fresh recovery wave above the $2.120 zone. The price is now consolidating and might clear the $2.350 resistance zone.

• XRP price started a fresh recovery wave above the $2.120 resistance zone.

• The price is now trading above $2.20 and the 100-hourly Simple Moving Average.

• There is a connecting bullish trend line forming with support at $2.25 on the hourly chart of the XRP/USD pair (data source from Kraken).

• The pair might continue to move up if it clears the $2.350 resistance zone.

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XRP Price Eyes Steady Increase

XRP price remained supported and started a recovery wave above the $2.00 zone, like Bitcoin and Ethereum. The price was able to clear the $2.050 and $2.120 resistance levels.

There was a move above the $2.250 resistance. However, the bears are now active near the $2.350 resistance zone. A high was formed at $2.348 and the price recently started a consolidation phase. There was a test of the 23.6% Fib retracement level of the upward move from the $1.90 swing low to the $2.348 high.

The price is now trading above $2.20 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $2.25 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $2.30 level. The first major resistance is near the $2.350 level. The next resistance is $2.450. A clear move above the $2.450 resistance might send the price toward the $2.50 resistance. Any more gains might send the price toward the $2.550 resistance or even $2.650 in the near term. The next major hurdle for the bulls might be $2.80.

Another Drop?

If XRP fails to clear the $2.350 resistance zone, it could start another decline. Initial support on the downside is near the $2.250 level and the trend line. The next major support is near the $2.120 level and the 50% Fib retracement level of the upward move from the $1.90 swing low to the $2.348 high.

If there is a downside break and a close below the $2.120 level, the price might continue to decline toward the $2.050 support. The next major support sits near the $2.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $2.250 and $2.120.

Major Resistance Levels – $2.350 and $2.450.