XRP price recovered sharply above $2.50, but it faces many key hurdles. The price could decline again if it stays below $3.00 for a long time.
XRP Price Faces Major Rejection
After a major drop to $1.00, XRP saw a sharp recovery wave like Bitcoin. The price recovered most losses and climbed above the $2.00 level. There was a clear move above the 61.8% Fib retracement level of the downward move from the $3.10 swing high to the $1.00 low.
The bulls even pushed the price above $2.50. However, many key hurdles are still intact, like $3.00 and the 50-day simple moving average (blue).
XRP price is now trading well below the $3.00 pivot zone and the 50-day simple moving average (blue). The current price action suggests an increase in selling pressure near the 76.4% Fib retracement level of the downward move from the $3.10 swing high to the $1.00 low.
If the bears continue to protect $2.60, there could be a fresh bearish reaction. Immediate support is near the $2.350 level. The first major support sits near $2.30. A daily close below the $2.30 support could send the price further lower.
The next area of interest below $2.30 could be $2.050. If the bears push the price below $2.050, the price could gain bearish momentum. In the stated scenario, the price could slide below $2.00. The main hurdle for the bears could be $1.920. Any more losses could send the price toward the $1.60 support zone.
Upside Continuation?
If the bulls remain in action near $2.30 or $2.050, there could be a fresh increase. Immediate resistance sits near the $2.60 level. The first major hurdle is $2.920 and the 50-day simple moving average (blue). There is also a key bearish trend line at $2.930 on the daily chart.
The main hurdle is now forming near $3.00. A close above $2.930 and $3.00 could start a decent rally. The next stop for the bulls might be $3.350. Any more gains might open the doors for a move toward the $3.50 region or the 1.236 Fib extension level of the downward move from the $3.10 swing high to the $1.00 low at $3.60.
Overall, XRP price shows bearish signs below $2.920 and $3.00. To start a fresh increase, the bulls must overcome the $3.00 barrier. If not, the price could drop below $2.30.
