XRP Rally Fades—Price Surrenders Recent Gains

XRP price started a fresh decline from the $3.00 resistance. The price is down over 20% and might extend losses below the $2.20 support.

• XRP price started a fresh decline from the $3.00 zone.
• The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
• There was a break below a connecting bullish trend line with support at $2.40 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might continue to move down if it breaks the $2.20 support zone.

XRP Price Reverses

XRP price rallied above the $2.50 and $2.80 levels before the bears appeared, like Bitcoin and Ethereum. The price failed to clear the $3.00 resistance and started a fresh decline.

There was a sharp move below the $2.80 and $2.60 levels. The price traded below the 50% Fib retracement level of the upward move from the $1.95 swing low to the $3.00 high. There was also a break below a connecting bullish trend line with support at $2.40 on the hourly chart of the XRP/USD pair.

The price is now trading below $2.40 and the 100-hourly Simple Moving Average. It is now finding bids just above the 76.4% Fib retracement level of the upward move from the $1.95 swing low to the $3.00 high.

On the upside, the price might face resistance near the $2.35 level. The first major resistance is near the $2.40 level. The next resistance is $2.4750. A clear move above the $2.4750 resistance might send the price toward the $2.620 resistance.

Any more gains might send the price toward the $2.700 resistance or even $2.750 in the near term. The next major hurdle for the bulls might be $2.80.

More Losses?

If XRP fails to clear the $2.40 resistance zone, it could start another decline. Initial support on the downside is near the $2.20 level. The next major support is near the $2.120 level.

If there is a downside break and a close below the $2.120 level, the price might continue to decline toward the $2.050 support. The next major support sits near the $2.00 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 – $2.20 and $2.120.

Major Resistance Levels – $2.40 and $2.4750.