XRP Price Eyes Gains, But Technicals Suggest Upsides May Be Limited

XRP price started a fresh decline below the $2.350 zone. The price is now recovering losses and might face hurdles near the $2.420 zone.

• XRP price started a fresh decline below the $2.450 zone.

• The price is now trading above $2.350 and the 100-hourly Simple Moving Average.

• There is a connecting bearish trend line forming with resistance at $2.40 on the hourly chart of the XRP/USD pair (data source from Kraken).

• The pair might start another decline if it stays below the $2.450 resistance.

XRP Price Faces Hurdles

XRP price attempted a fresh decline below the $2.450 zone, unlike Bitcoin and Ethereum. There was a move below the $2.40 and $2.350 levels. The price even tested the $2.2850 zone.

A low was formed at $2.2848 and the price is now attempting to recover. There was a move above the $2.32 and $2.350 levels. The price surpassed the 50% Fib retracement level of the downward move from the $2.449 swing high to the $2.848 high.

However, the price now faces hurdles near the $2.40 level. The price is now trading above $2.35 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.40 level. There is also a connecting bearish trend line forming with resistance at $2.40 on the hourly chart of the XRP/USD pair.

The first major resistance is near the $2.420 level. It is near the 76.4% Fib retracement level of the downward move from the $2.449 swing high to the $2.848 high.

The next resistance is $2.50. A clear move above the $2.50 resistance might send the price toward the $2.60 resistance. Any more gains might send the price toward the $2.650 resistance or even $2.680 in the near term. The next major hurdle for the bulls might be $2.80.

Another Decline?

If XRP fails to clear the $2.420 resistance zone, it could start another decline. Initial support on the downside is near the $2.350 level. The next major support is near the $2.320 level.

If there is a downside break and a close below the $2.320 level, the price might continue to decline toward the $2.20 support. The next major support sits near the $2.120 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 above the 50 level.

• Major Support Levels – $2.350 and $2.320.

• Major Resistance Levels – $2.40 and $2.420.