XRP price broke higher and cleared the $2.150 resistance zone. It is now consolidating gains and might soon aim for another rally to $3.00.
XRP Price Breaks Key Downtrend Resistance
In the last analysis, we discussed a major hurdle for XRP price near the $2.150 and $2.20 levels. The bulls faced heavy resistance, but the recent surge in Ethereum and Bitcoin sparked a bullish move. XRP cleared the $2.150 resistance to move into a positive zone.
There was a clear move above a major bearish trend line with resistance at $2.350 on the daily chart. The price even surged above the 76.4% Fib retracement level of the downward move from the $2.5950 swing high to the $1.6155 low.
XRP price settled above the $2.350 level and the 50-day simple moving average (blue). Finally, it tested the $2.60 resistance zone. Recently, there was a minor pullback below the $2.50 level.
The price is moving lower and might soon test the same trend line which could act as a strong support. If the bulls remain active above the $2.350 level, the price could start another increase. Immediate resistance on the upside sits near the $2.55 level.
The first major resistance is near the $2.60 level. A close above the $2.60 level could open the doors for another surge. In the stated case, the price could rise toward the $2.8250 level. It coincides with the 1.236 Fib extension level of the downward move from the $2.5950 swing high to the $1.6155 low.
The next resistance is near the $3.00 level, above which the price could accelerate higher toward the $3.20 resistance and the 1.618 Fib extension level of the downward move from the $2.5950 swing high to the $1.6155 low. Any more gains might open the doors for a move toward the $4.00 handle.
Sustained Decline?
Conversely, XRP price might continue to move down if it stays below $2.50. Immediate support is near the $2.40 level. The first major support sits near the $2.350 level.
The next major support is near the $2.20 level and the 50-day simple moving average (blue). A daily close below the $2.20 level could spark another major decline. In the stated case, the bears might aim for a move toward the $2.00 support.
Overall, XRP price is correcting gains below the $2.50 support zone. If the bulls remain active above the $2.350 support, the price could start another increase and clear $2.60.
