XRP price struggled to settle above $3.080 and trimmed gains. The price still shows bearish signs and could drop further below $2.70.
XRP Price Faces Major Rejection
In the last technical analysis, we discussed the chances of a fresh decline in XRP if it stays below $3.00 and $3.080. Earlier, there was a recovery wave from $2.70, and the price climbed above $2.920. There was a spike above the 61.8% Fib retracement level of the downward move from the $3.182 swing high to the $2.705 low.
However, the bears remained active near $3.080 and momentum was missing compared to Bitcoin. They protected a close above the 76.4% Fib retracement level of the downward move from the $3.182 swing high to the $2.705 low. As a result, there was a bearish reaction from $3.00 and a key declining channel with current resistance at $3.050 on the daily chart.
XRP price is now trading below the $3.00 pivot zone and the 50-day simple moving average (blue). The current price action suggests an increase in selling pressure.
Immediate support is near the $2.80 level. The first major support sits near the $2.70 low. A daily close below the $2.70 support could send the price further lower. The next area of interest below $2.70 could be $2.580 or the channel’s lower trend line at $2.50.
If the bears push the price below $2.50, the price could gain bearish momentum. In the stated scenario, the price could slide below $2.320. The main hurdle for the bears could be $2.20. Any more losses could send the price toward the $2.020 support zone.
Another Recovery?
If the bulls remain in action near $2.80 or $2.70, there could be a fresh recovery. Immediate resistance sits near the $2.940 level and the 50-day simple moving average (blue). The first major resistance is $3.00.
The main hurdle is now forming near $3.050 and the channel’s trend line. A close above $3.00 and $3.050 could start a decent rally. The next stop for the bulls might be $3.30 since it is close to the 1.236 Fib extension level of the downward move from the $3.182 swing high to the $2.705 low. Any more gains might open the doors for a move toward the $3.480 region or even $3.50.
Overall, XRP price shows bearish signs below $3.00 and $3.050. To start a recovery wave, the bulls must overcome the $3.00 and $3.050 resistance levels. If not, the price could drop below $2.70.
