The value of XRP has witnessed a significant tumble below the $3.00 mark, stirring uncertainty among investors. With a staggering decline of over 25%, the cryptocurrency dipped below the $2.00 support zone. The downward trend continued as the price fell beneath the $2.80 and $2.50 thresholds.
Currently, XRP is trading below $2.60, under the 100-hourly Simple Moving Average. There is an emerging bearish trend line with resistance at $2.45 on the hourly chart of the XRP/USD pair (data sourced from Kraken). A potential recovery could be on the horizon if the currency surpasses the $2.50 resistance zone.
Likewise, Bitcoin and Ethereum, XRP also began its descent from the $3.00 zone. The price plummeted below the $2.80 and $2.50 support levels, with bears pushing it beneath $2.00. The drastic 25% drop led the price to test the $1.75 zone. However, some losses are now being corrected as the price has risen above the $2.00 level.
Despite the decline, the price managed to surpass the 23.6% Fib retracement level of the downward move from the $3.155 swing high to the $1.750 low. Now, XRP faces potential resistance near the $2.30 level. The first significant resistance is around the $2.40 level.
In case the $2.40 resistance zone remains intact, XRP may experience another decline. Initial support on the downside is close to the $2.10 level, followed by the significant support near the $2.00 level.
On the other hand, a clear move above the $2.450 resistance might propel the price towards the $2.50 resistance. Further gains could drive the price towards the $2.650 resistance, and possibly even $2.720 in the near term. The bulls’ next big challenge might be the $3.00 mark.
Technical Indicators suggest a bearish outlook with the MACD for XRP/USD gaining pace in the bearish zone and the RSI for XRP/USD now below the 50 level. Major Support Levels are $2.10 and $2.00, while Major Resistance Levels are $2.40 and $2.50.
