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XRP Struggles Below $2–Is Another Drop Coming?
The recent surge in XRP’s price is at a standstill, yet again. After an initial rebound, however, XRP did not manage to get past the key $2.00 resistance mark and is now pulling back. This has left traders in doubt: Is XRP in the process of preparing for another slump?
XRP Price Recap: From $2.16 High to $1.61 Low
In the last few hours, XRP saw a sharp drop from its highest of $2.168, breaking resistance levels of $1.950 or $1.80. It fell up to $1.610 before attempting a moderate bounce.
Since then, XRP has rebounded from those $1.750 or $1.850 levels and has even exceeded that 50% Fib level between the $2.168 high and the $1.610 low. But the bulls’ momentum seems to be diminishing because the price has remained just below the $1.950 mark as well as the 100-hour Simple Moving Average.
Key Resistance Zones Ahead
On the hourly chart for XRP/USD (data obtained from Kraken), a bearish trend line appears to be forming around $1.935. This line is also closely aligned with the 61.8 percent Fib retracement of the recent decline, which adds more weight to this zone of resistance.
The initial major hurdle is at $2.00. If the bulls can break through this level, then the next resistance levels will be $2.050 or $2.120. If they can break these levels, it can trigger a rally towards $2.1650 or $2.20 within the next few days.
What If XRP Fails to Break Higher?
If XRP does not manage to cross $1.950 as well as the $2.00 area, another drop might be coming up. The immediate support zone is at $1.850 and the stronger support is being found at $1.80. If the price drops to below $1.80 could open the door to further downswing, an attack on the $1.740 as well as the $1.650 level next.
Technical Indicators
- The MACD hourly rate is showing indications of the bullish trend.
- Hourly RSI: Held over the 50 mark. This indicates mild force.
Final Thoughts
XRP is in an impasse. Bulls must gain territory above $2.00 to get back on track; however, with resistance accumulating and the path ahead isn’t going to be straightforward. If the buyers aren’t able to overcome resistance, a new period of selling may bring the price back down towards the $1.70s.
Be aware of the zones of support and resistance. They’ll determine the direction XRP will take in the future.
