XRP declined below $2.20 and retested the $1.95 support. The price must stay above $1.95 to avoid a major drop in the medium term.
XRP Price Clings To Key Support
In the past few days, the cryptocurrency market saw a steady decline despite many positive news. Bitcoin, ETH, and XRP saw bearish moves. XRP declined below the $2.40 support to move further in a bearish zone.
The decline was such that the price spiked below the $2.0 support. It tested the main support at $1.95 and the 50% Fib retracement level of the upward move from the $0.5033 swing low to the $3.40 high.
The price is now consolidating above the $1.95 support with a bearish angle. The last two weekly candles suggest an increase in selling pressure below the $2.20 level, but the price is still well above the 50-week simple moving average (blue).
If the bears fail to push the price below the $1.950 support, XRP might see a recovery wave. On the upside, immediate resistance is near the $2.120 level. The first key resistance is near the $2.20 level.
A clear move above the $2.20 level might decrease the bearish pressure. In the stated case, the price might rise and test the $2.40 resistance. The main stop for the bulls could be $2.55 in the coming weeks. There is also a connecting bearish trend line forming with resistance at $2.55 on the weekly chart.
A weekly close above the trend line resistance could set the pace for a larger increase. In the stated case, the price could revisit the $3.00 resistance zone.
Downside Break?
Conversely, XRP price might fail to clear $2.20 and continue to move down. Immediate support on the downside is near the $2.00 level. The next key support sits at $1.950, below which the price could gain bearish momentum.
The next key support sits at $1.80. If the bulls fail to protect the $1.80 support, the price might accelerate lower toward the $1.60 support zone. Any more losses might increase selling pressure and encourage the bears for a move toward the 50-week simple moving average at $1.1850. It is close to the 76.4% Fib retracement level of the upward move from the $0.5033 swing low to the $3.40 high.
Overall, XRP price is struggling to stay above the $1.950 support zone. A weekly close below $1.950 might send the price toward $1.60 or even $1.1850 in the coming weeks.
