XRP price started a consolidation phase above the $2.250 resistance zone. The current price action suggests the price could soon start a fresh rally.
XRP Price Consolidates Gains
In the last analysis, we saw a fresh increase and a bullish breakout XRP price above the $2.20 and $2.250 levels. The bulls pumped the price above the $2.50 resistance zone, like Ethereum and Bitcoin. However, the bears were active near the $2.650 zone.
A high was formed at $2.6541 and the price started a downside correction. Recently, there was a drop below the $2.50 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $1.6155 swing low to the $2.6541 high.
XRP price is now consolidating and trading above the 50-day simple moving average (blue). The bulls are also active above the 50% Fib retracement level of the upward move from the $1.6155 swing low to the $2.6541 high.
The current price action suggests the price is consolidating the recent bullish move and might soon resume higher. Immediate resistance on the upside sits near the $2.40 level. The first major resistance is near the $2.50 level. A close above the $2.50 level could open the doors for another surge.
In the stated case, the price could rise toward the $2.720 level. The next resistance is near the $2.850 level, above which the price could accelerate higher toward the $3.00 resistance. Any more gains might open the doors for a move toward the $3.20 zone.
More Losses?
Conversely, XRP price might continue to move down if it stays below $2.50. Immediate support is near the $2.20 level and the 50-day simple moving average (blue). There is also a key bullish trend line forming with support at $2.20 on the daily chart.
The first major support sits near the $2.1350 level. The next major support is near the $2.020 level and the 61.8% Fib retracement level of the upward move from the $1.6155 swing low to the $2.6541 high. A daily close below the $2.020 level could spark another major decline.
In the stated case, the bears might aim for a move toward the $1.860 support. If the bulls fail to protect the $1.860 level, the price could even decline below the $1.60 zone in the medium term.
Overall, XRP price is consolidating gains above the $2.20 support zone. If the bulls remain active above the $2.20 support, the price could start another increase and clear $2.50.
