XRP started a major decline below the $2.60 support. The price stayed above $2.00 but remains at risk of another decline.
XRP Price Faces Key Hurdles
In the last technical analysis, we saw a sharp decline in XRP after it failed to clear the $3.00 resistance zone. There was a drop below the $2.50 support and the 50-day simple moving average (blue). The bears even pushed the price below the $2.40 support.
Finally, there was a spike below the $2.250 support before the bulls appeared. A low was formed at $2.220 and the price started a recovery wave, like Bitcoin and Ethereum.
XRP price was able to climb above the $2.32 and $2.40 resistance levels. It cleared the 23.6% Fib retracement level of the recent decline from the $3.010 resistance zone to the $2.220 low.
The price is now consolidating below the 50-day simple moving average (blue) and facing many hurdles. If the bulls remain active and attempt another increase, they could face resistance near the $2.550 level. The first major resistance is now forming near the $2.6150 level.
The main hurdle is now forming near the $2.70 level and the 50-day simple moving average (blue). It coincides with the 61.8% Fib retracement level of the recent decline from the $3.010 resistance zone to the $2.220 low.
A close above the $2.70 level might decrease the bearish pressure and send the price toward the $3.00 resistance. The next key resistance is now forming near the $3.20 zone and the 1.236 Fib extension level of the recent decline from the $3.010 resistance zone to the $2.220 low.
A clear move above the $3.20 resistance could set the pace for a larger increase. In the stated case, the price could rally and test the $3.350 resistance. The next major resistance is near the $3.50 level.
Another Decline?
Conversely, XRP price might struggle to recover above the $2.6150 resistance and start another decline. Immediate support is near the $2.220 level, below which the price might gain bearish momentum.
The first major support sits near the $2.00 level. There is also a key rising channel forming with support at $2.00 on the daily chart. The next major support is near the $1.950 level. A daily close below the $1.95 level could spark another major decline.
In the stated case, the bears might aim for a move toward the $1.780 support. The next target for the bears could be $1.650. Any more losses might send the price toward the $1.5350 support.
Overall, XRP price is attempting to recover above the $2.40 level. To start a fresh increase, it must settle above $2.6150 and then $2.70. If not, the bears could aim for a drop toward the $2.00 level.
