XRP Price Nears Key Support—A Breakdown Could Be Devastating

XRP price is struggling to clear the $2.60 and $2.70 levels. The price is now at a risk of more downsides below the $2.50 support zone.

• XRP price started a fresh decline below the $2.620 level.
• The price is now trading below $2.60 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $2.5650 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might start a fresh increase if it clears the $2.60 resistance zone.

XRP Price Dips To Support

XRP price attempted to gain pace for a move above the $2.750 level. However, the bears remained active and the price started a fresh decline below the $2.650 support, like Bitcoin.

The price even dipped  below $2.60 and tested the $2.50 support. A low was formed at $2.508 and the price is now attempting to recover. There was a move above the 23.6% Fib retracement level of the downward wave from the $2.7450 swing high to the $2.508 low.

The price is now trading below $2.60 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.5650 level. There is also a connecting bearish trend line forming with resistance at $2.5650 on the hourly chart of the XRP/USD pair.

The first major resistance is near the $2.60 level. The next resistance is $2.620 or the 50% Fib retracement level of the downward wave from the $2.7450 swing high to the $2.508 low.

A clear move above the $2.620 resistance might send the price toward the $2.650 resistance. Any more gains might send the price toward the $2.720 resistance or even $2.750 in the near term. The next major hurdle for the bulls might be $2.850.

More Losses?

If XRP fails to clear the $2.60 resistance zone, it could start another decline. Initial support on the downside is near the $2.520 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 $2.40 support. The next major support sits near the $2.320 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 – $2.520 and $2.50.

Major Resistance Levels – $2.60 and $2.620.