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XRP Price Finds Some Relief, But Faces Headwinds on The Path Up
XRP, a leading cryptocurrency, witnessed a notable downturn as it slipped below the $2.00 threshold. This recent setback positions the digital asset below critical technical markers, including the 100-hourly Simple Moving Average, indicating a challenging road ahead. The price is now making an attempt to correct its losses, confronting formidable resistance near the $2.050 level.
A key bearish trend line is evident, with resistance situated at $2.020 on the hourly chart of the XRP/USD pair, data sourced from Kraken. Should XRP manage a conclusive break above the $2.050 resistance, it could potentially initiate a fresh upward trajectory.
The downturn mirrored broader market movements, as seen with major cryptocurrencies like Bitcoin and Ethereum. XRP’s decline took it below crucial support levels at $2.050 and $2.020, eventually dipping to test the $1.920 support level. A minor recovery ensued, with the price overcoming the 23.6% Fibonacci retracement level of the recent drop from a swing high of $2.178 to a low of $1.910.
However, the recovery faces significant obstacles. Immediate resistance is near the $2.020 mark, followed by a more substantial barrier at $2.050, corresponding to the 50% Fibonacci retracement level. If XRP can surpass the $2.080 resistance, it may aim for higher resistance levels at $2.120 and potentially $2.150 in the near term, with a long-term target at $2.250.
Conversely, if XRP fails to breach the $2.050 resistance zone, another decline could be imminent. Initial support is found near the $1.950 level, with more substantial support at $1.920. A break below this could exacerbate losses, directing XRP towards the $1.880 support area, with critical support thereafter at the $1.840 level.
From a technical standpoint, the MACD indicator for XRP/USD is losing momentum in the bearish zone, while the Relative Strength Index (RSI) remains below the neutral 50 mark, both signaling caution among traders.
In summary, while XRP has managed some recovery from recent lows, it faces a series of technical challenges on its path upwards. Investors and traders should keep a close watch on resistance and support levels, as they could dictate the short-term trajectory of XRP’s price movement.
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