TLDR

• XRP experienced a sharp decline after failing to break the $3.00 resistance level, dropping over 20%
• The price is currently trading below both $2.50 and the 100-hourly Simple Moving Average
• Technical analysis shows a break below the bullish trend line at $2.40 on the hourly chart
• Major support levels are established at $2.20 and $2.120
• Key resistance levels to watch are $2.40 and $2.4750

The cryptocurrency market witnessed notable price action in XRP as the digital asset retreated from its recent attempt to breach the $3.00 threshold. The price movement, which began with an upward surge past $2.50 and $2.80, has since reversed course, mirroring similar patterns seen in Bitcoin and Ethereum.

Early trading saw XRP demonstrate strong momentum, pushing toward the $3.00 mark before encountering steady resistance. The upward movement, which had originated from a swing low of $1.95, failed to sustain its trajectory upon reaching this psychological barrier.

The reversal began with a sharp downturn, taking XRP below several key price levels. Traders observed the asset breaking beneath both $2.80 and $2.60, indicating a shift in market sentiment. The decline continued past the 50% Fibonacci retracement level, calculated from the recent upward movement between $1.95 and $3.00.

Technical analysts noted a crucial development on the hourly chart of the XRP/USD pair, as tracked by Kraken exchange data. A connecting bullish trend line, which had provided support at $2.40, was breached during the downturn. This technical breakdown suggests a potential continuation of the bearish pressure.

Current market data shows XRP trading below both the $2.40 price point and the 100-hourly Simple Moving Average, two indicators closely watched by traders. The price has found temporary support near the 76.4% Fibonacci retracement level of the earlier upward movement.

Looking at potential recovery scenarios, the immediate resistance zone appears around $2.35. Above this, traders are watching the $2.40 level as the first major hurdle. Should buying pressure increase, the next resistance point sits at $2.4750.

Market Analysis

Market technicians suggest that a successful break above $2.4750 could open the path toward $2.620. In an extended recovery scenario, the price might approach the $2.700 mark or potentially reach $2.750 in the near term. The $2.80 level represents a major obstacle for any sustained upward movement.

On the downside, immediate support can be found near $2.20. If this level fails to hold, the next support zone lies at $2.120. Technical analysis indicates that a break below $2.120 could trigger further selling pressure, potentially pushing the price toward $2.050.

The $2.00 price point represents a psychological support level that many traders are watching closely. This zone could prove crucial in determining the medium-term direction of XRP’s price action.

Technical indicators present a mixed picture. The MACD (Moving Average Convergence Divergence) for XRP/USD shows increasing momentum in the bearish zone. Meanwhile, the Relative Strength Index (RSI) has dipped below the 50 level, suggesting weakening bullish momentum.

The hourly chart patterns indicate that XRP faces resistance at multiple levels between its current price and the recent high. Trading volume data suggests active participation from both buyers and sellers during this period of price discovery.

Market participants are closely monitoring the support level at $2.20, as it represents a crucial threshold for maintaining the broader upward trend. A sustained break below this level could signal a deeper retracement.

Recent trading activity shows the price consolidating above the 76.4% Fibonacci retracement level, with traders watching for signs of potential reversal or continuation of the current trend.