XRP Price Pulls Back: Healthy Correction or Start of a Fresh Downtrend?

XRP price started a fresh increase above the $2.20 resistance. The price is now correcting gains and might find bids near the $2.050 zone.

• XRP price started a downside correction from the $2.250 resistance zone.
• The price is now trading below $2.120 and the 100-hourly Simple Moving Average.
• There was a break below a connecting bullish trend line with support at $2.140 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might extend losses if there is a close below the $2.050 support zone.

XRP Price Dips Again

XRP price started a fresh increase above the $1.980 resistance, like Bitcoin and Ethereum. The price climbed above the $2.020 and $2.050 resistance levels.

A high was formed at $2.244 and the price recently started a downside correction. There was a move below the $2.120 support zone. Besides, there was a break below a connecting bullish trend line with support at $2.140 on the hourly chart of the XRP/USD pair.

The price even spiked below the 50% Fib retracement level of the upward move from the $1.920 swing low to the $2.244 high. The price is now trading below $2.120 and the 100-hourly Simple Moving Average.

On the upside, the price might face resistance near the $2.120 level. The first major resistance is near the $2.180 level. The next resistance is $2.20. A clear move above the $2.20 resistance might send the price toward the $2.250 resistance. Any more gains might send the price toward the $2.320 resistance or even $2.350 in the near term. The next major hurdle for the bulls might be $2.50.

Another Decline?

If XRP fails to clear the $2.120 resistance zone, it could start another decline. Initial support on the downside is near the $2.050 level and the 61.8% Fib retracement level of the upward move from the $1.920 swing low to the $2.244 high. The next major support is near the $2.00 level.

If there is a downside break and a close below the $2.00 level, the price might continue to decline toward the $1.920 support. The next major support sits near the $1.840 zone.

Technical Indicators

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

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

Major Support Levels – $2.050 and $2.00.

Major Resistance Levels – $2.120 and $2.180.