XRP price started a downside correction below the $2.920 support. The price is attempting to recover, but upside might be capped near $3.00.
XRP Price Could Face Hurdles If It Recovers
In the last technical analysis, we saw a downside correction in XRP below the $3.150 zone. The price declined below the $3.050 and $3.00 support levels to enter a bearish zone. The bears even pushed the price below $2.920 and the 50-day simple moving average (blue), like Bitcoin.
The decline was such that the price spiked below the 50% Fib retracement level of the key increase from the $1.9124 swing low to the $3.6614 high. These are now warning signs and suggest the bulls are losing control.
XRP price is now trading well below $3.00 and the 50-day simple moving average (blue). The bulls seem to be active at $2.70, and there are a few recovery signs emerging.
If there is a recovery wave, the bulls could attempt to reclaim $3.00. Immediate resistance on the upside is near the $2.880 level. The first major resistance is near the $2.920 level. The main hurdle is now forming near $3.00 since there is a key bearish trend line in place on the same chart at $2.98.
A close above the trend line and $3.00 could encourage the bulls to push the price toward the 50-day simple moving average (blue) at $3.10. To start a fresh increase and decrease the current bearish pressure, XRP must settle above $3.00 and $3.10.
In the stated case, the price could rise toward the $3.280 level. The next resistance is near the $3.350 level, above which the price could accelerate higher toward the $3.450 resistance. Any more gains might open the doors for a move toward the $3.550 zone.
Fresh Drop?
Conversely, XRP could fail to start a recovery wave and might continue to move down. Immediate support is near the $2.70 level. A daily close below the $2.70 support could send the price further lower.
The first major support below $2.70 is near the 61.8% Fib retracement level of the upward move from the $1.9124 swing low to the $3.6614 high at $2.580. If the bears push the price below $2.580, the price could gain bearish momentum.
In the stated scenario, the price could decline below $2.50. The main support could be $2.420. If there is a clear move below $2.420, the price could dive and test $2.3250. Any more losses could send the price toward the $2.20 support zone.
Overall, XRP price could attempt a recovery wave, but upside might be capped near $3.00 or $3.10. A close above $3.10 could initiate a steady increase. If not, the price could drop further to $2.580.
