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XRP Price Explodes 25%: Will The Recovery Sustain or Fizzle Out?
XRP price recovered most losses and rallied over 25%. The price is back above $2.65 and now faces hurdles near the $2.820 level.
- XRP price started a strong upward move above the $2.50 level.
- The price is now trading below $2.80 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trend line with resistance at $2.420 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair might start a fresh increase if it clears the $2.820 resistance zone.
XRP Price Recovers Over 25%
XRP price started a fresh decline below the $2.850 zone, like Bitcoin and Ethereum. The price declined heavily below the $2.50 and $2.350 support levels. The bears even pushed it below $2.00.
There was a sharp drop of over 25% and the price tested the $1.75 zone. A low was formed at $1.75 and the price recently started a sharp recovery wave. The bulls pumped the price above the $2.20 and $2.50 levels. There was a move above the 61.8% Fib retracement level of the downward move from the $3.155 swing high to the $1.750 low.
Besides, there was a break above a connecting bearish trend line with resistance at $2.420 on the hourly chart of the XRP/USD pair. The price is now trading below $2.80 and the 100-hourly Simple Moving Average.
On the upside, the price might face resistance near the $2.80 level. The first major resistance is near the $2.820 level and the 76.4% Fib retracement level of the downward move from the $3.155 swing high to the $1.750 low. The next resistance is $2.940.
A clear move above the $2.940 resistance might send the price toward the $3.00 resistance. Any more gains might send the price toward the $3.050 resistance or even $3.120 in the near term. The next major hurdle for the bulls might be $3.20.
Another Decline?
If XRP fails to clear the $2.820 resistance zone, it could start another decline. Initial support on the downside is near the $2.620 level. The next major support is near the $2.50 level.
If there is a downside break and a close below the $2.50 level, the price might continue to decline toward the $2.450 support. The next major support sits near the $2.350 zone.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $2.620 and $2.450.
Major Resistance Levels – $2.80 and $2.820.