XRP Price Dips Back to Support: Consolidation or Breakdown Ahead?

XRP price struggled to continue higher above the $3.25 level. The price is now correcting gains and might find bids near the $3.00 level.

• XRP price started a downside correction from the $3.250 zone.
• The price is now trading below $3.150 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $3.10 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might start a fresh increase if it stays above the $3.00 support.

XRP Price Dips To Support

XRP price managed to start a fresh increase from the $3.050 support zone, but upsides were limited compared to Bitcoin. The price was able to surpass the $3.150 level before the bears appeared.

A high was formed at $3.25 and the price corrected all gains. A low was formed at $3.035 and the price is now consolidating below the 23.6% Fib retracement level of the downward move from the $3.285 swing high to the $3.035 low.

The price is now trading below $3.15 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $3.10 level. There is also a connecting bearish trend line forming with resistance at $3.10 on the hourly chart of the XRP/USD pair.

The first major resistance is near the $3.160 level or the 50% Fib retracement level of the downward move from the $3.285 swing high to the $3.035 low. The next resistance is $3.20.

A clear move above the $3.20 resistance might send the price toward the $3.250 resistance. Any more gains might send the price toward the $3.350 resistance or even $3.3650 in the near term. The next major hurdle for the bulls might be $3.450.

More Losses?

If XRP fails to clear the $3.10 resistance zone, it could start another decline. Initial support on the downside is near the $3.050 level. The next major support is near the $3.00 level.

If there is a downside break and a close below the $3.00 level, the price might continue to decline toward the $2.880 support. The next major support sits near the $2.750 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 – $3.050 and $3.00.

Major Resistance Levels – $3.10 and $3.20.