XRP Price Takes a Breather — Can Bulls Bounce Back from Here?

XRP price started a fresh increase above the $2.30 zone. The price is now correcting gains and holding the $2.220 support zone.

• XRP price started a fresh increase above the $2.30 zone.
• The price is now trading below $2.2650 and the 100-hourly Simple Moving Average.
• There is a key contracting triangle forming with support at $2.220 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might start another increase unless there is a close below the $2.220 support.

XRP Price Holds Key Support

XRP price started a decent upward wave above the $2.250 and $2.280 resistance levels, beating Bitcoin and Ethereum. The price traded above the $2.30 level to enter a positive zone.

A high was formed at $2.359 and the price started a downside correction. There was a move below the $2.30 and $2.280 support levels. The price tested the $2.220 support zone. A low was formed at $2.2220 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $2.359 swing high to the $2.2220 low.

The price is now trading below $2.2650 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.250 level.

The first major resistance is near the $2.280 level. There is also a key contracting triangle forming with support at $2.220 on the hourly chart of the XRP/USD pair. The next resistance is $2.30 and the 61.8% Fib retracement level of the downward move from the $2.359 swing high to the $2.2220 low.

A clear move above the $2.30 resistance might send the price toward the $2.350 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 $2.420.

Dips Supported?

If XRP fails to clear the $2.2650 resistance zone, it could start another decline. Initial support on the downside is near the $2.220 level. The next major support is near the $2.20 level.

If there is a downside break and a close below the $2.20 level, the price might continue to decline toward the $2.160 support. The next major support sits near the $2.120 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 – $2.220 and $2.20.

Major Resistance Levels – $2.2650 and $2.30.

Source