XRP Price Drops to Crucial Support: Can It Stage a Turnaround?

XRP price started a fresh decline below the $2.350 zone. The price retested the $2.20 support zone and is currently attempting a recovery wave.

• XRP price started a fresh decline from the $2.720 zone.
• The price is now trading below $2.50 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $2.45 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might start another increase if it clears the $2.40 resistance.

XRP Price Dives To $2.20

XRP price failed to start a fresh increase above the $2.50 level and started a fresh decline, like Bitcoin and Ethereum. There was a move below the $2.45 and $2.40 levels.

The price declined over 5% and there was a move below the $2.320 support. Finally, the price spiked below the $2.20 support. A low was formed at $2.171 and the price is now correcting losses. There was a move above the $2.250 level.

The price cleared the 23.6% Fib retracement level of the downward move from the $2.720 swing high to the $2.171 low. The price is now trading below $2.50 and the 100-hourly Simple Moving Average.

On the upside, the price might face resistance near the $2.40 level. The first major resistance is near the $2.450 level. There is also a connecting bearish trend line forming with resistance at $2.45 on the hourly chart of the XRP/USD pair. The trend line is close to the 50% Fib retracement level of the downward move from the $2.720 swing high to the $2.171 low.

The next resistance is $2.50. A clear move above the $2.50 resistance might send the price toward the $2.55 resistance. Any more gains might send the price toward the $2.620 resistance or even $2.80 in the near term. The next major hurdle for the bulls might be $3.00.

Are Dips Supported?

If XRP fails to clear the $2.40 resistance zone, it could start another decline. Initial support on the downside is near the $2.25 level. The next major support is near the $2.20 level.

If there is a downside break and a close below the $2.20 level, the price might continue to decline toward the $2.050 support. The next major support sits near the $2.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.20 and $2.050.

Major Resistance Levels – $2.40 and $2.450.