XRP has experienced a significant price pullback following a substantial rally, with the cryptocurrency now trading below key technical levels and facing increased volatility. After failing to maintain momentum above the $2.320 resistance level, XRP declined below $2.250 and broke through a crucial bullish trend line that previously provided support at $2.245 on the hourly XRP/USD chart.
The price action saw XRP drop to a low of $2.141, placing it below both the $2.250 level and the 100-hour Simple Moving Average. Technical indicators have turned bearish, with the hourly MACD gaining momentum in negative territory and the RSI falling below the 50 level, suggesting weakening buying pressure.
Market analysts note that despite the recent decline, the larger trend for XRP remains constructive, indicating potential for future developments. One analyst observed, "The adaptability of cryptocurrency markets is driven by both innovation and regulation," highlighting the complex factors influencing XRP's trajectory.
Key resistance levels to watch include $2.20 and $2.250, with a close above $2.250 potentially triggering a move toward $2.30. The $2.320 level represents a more significant hurdle, coinciding with the 61.8% Fibonacci retracement level of the recent decline from the $2.416 swing high to the $2.141 low. Beyond that, resistance sits at $2.350, $2.40, and $2.450.
On the downside, critical support levels are established at $2.150, $2.120, and $2.050. A break below $2.120 could lead to further declines toward $2.00, with the next major support zone around $1.880. The ongoing price fluctuations have drawn significant attention from investors and traders, causing shifts in market sentiment while maintaining cautious optimism about XRP's longer-term potential.
