XRP started a recovery wave above the $2.20 resistance. It is now facing hurdles near $2.60 and might react to the downside.
XRP Price Upsides Remain Capped
After a major decline, XRP price found support near the $1.90 zone. A base was formed and the price started a recovery wave above the $2.05 pivot level, like Bitcoin and Ethereum. The price was able to recover above the $2.20 resistance zone.
The bulls gained strength for a spike above the 50-day simple moving average (blue). The price even spiked above the 50% Fib retracement level of the downward move from the $3.010 swing high to the $1.910 low.
XRP price traded close to the key resistance at $2.60. It seems like the bears remained active near the $2.60 level and there was no follow-up move. The price failed to clear the 61.8% Fib retracement level of the downward move from the $3.010 swing high to the $1.910 low.
There was a bearish reaction, and the price traded below the $2.50 level. It is now consolidating just below the 50-day simple moving average (blue).
The current price action is slightly negative and it seems like the bulls are facing many hurdles on the upside, starting with $2.50. If they attempt another increase, they could face resistance near the $2.50 level. The first major resistance is now forming near the $2.60 level.
The main hurdle is now forming near the $2.750 level. There is also a key bearish trend line forming with resistance at $2.75 on the same chart. A close above the $2.750 level might decrease the bearish pressure and send the price toward the $3.00 resistance.
The next key resistance is now forming near the $3.250 zone and the 1.236 Fib extension level of the downward move from the $3.010 swing high to the $1.910 low. Any more gains might call for a move toward the $3.50 level.
Another Decline?
Conversely, XRP price might struggle to recover above the $2.60 resistance and start another decline. Immediate support is near the $2.350 level, below which the price might gain bearish momentum.
The first major support sits near the $2.250 level. The next major support is near the $2.050 level. A daily close below the $2.050 level could spark another major decline. In the stated case, the bears might aim for a move toward the $1.90 support. The next target for the bears could be $1.80. Any more losses might send the price toward the $1.650 support.
Overall, XRP price is consolidating near the $2.40 level. To start a fresh increase, it must settle above $2.60 and then $2.750. If not, the bears could aim for a drop toward the $2.050 level.