In the past 24 hours, Ripple’s XRP has been showing positive trends with notable gains and bouncing off an important support zone. Analysts warn that approaching the $2.50 mark, there are some significant resistance levels above that will slow the rise. Investors and traders have been speculating about the digital asset’s next move following this price action.
Key Developments
The latest bounce for XRP comes from its primary support range of $2.25 – $2.30 in price. Although XRP recorded these recent gains, experts like Josh from Crypto World point out the challenges faced by the coin in breaking through key resistance levels.
At present, the price of XRP is in the region of $2.42, and it is maintained above the 100-hour Simple Moving Average (SMA). However, still, the coin faces an uphill battle in trying to push past the $2.50 resistance level, followed by several other hurdles that might put a lid on its short term growth.
Overview
In the last few days, cryptocurrency suffered mixed outcomes in terms of price performance. Its upwards movement is great, but numerous resistance levels also suggest some rough times ahead. Whether XRP is able to overcome these resistances or falls back into the support zone, its price trajectory will largely be dependent on such a move.
XRP Support and Resistance Levels
The most critical support zone for token lies between $2.25 and $2.30. If the price remains within this range, it is likely the price will be stable at least or continue to climb higher. This is a support zone, as such, it provides some comfort for investors. However, a drop below this range would indicate that the token is on the verge of depreciating.
However, there is an upside, and that comes with several challenges. XRP faces significant resistance between the $2.58 and $2.73 range. First, the $2.50 level can be viewed as a key point of resistance, and any push above here could be followed up by a breakout towards $2.60 and even $2.70. The bulls may be able to look for $2.80 as their next stop if they can just capitalize on success to get out of $2.70.
XRP Fibonacci Retracement Levels
Currently, the price of XRP is floating just above $2.42, and the resistance at $2.48 is almost at parity with the 76.4% retracement target Fibonacci of a previous dip in price. If indeed it breaks clearly above this, it will find demand on its way higher, but for now, it may find difficulty in surpassing such pivotal levels.
Bullish vs. Bearish Divergence
However, XRP had been showing bullish divergence at one point, and more recent price action has now negated that sign. This has left traders cautious as they are uncertain if an upward move is in the cards now. While the indicators contradict each other, XRP manages to remain above its support level and still offers scope for short term price stability.
Like every other altcoin, the price of the token and its movements, are always influenced by the price movements of Bitcoin. Should Bitcoin enter a sideways price action period, XRP will most likely experience the same. Bitcoin’s trends are closely followed by the investors, which can potentially provide indispensable information into how coin may behave in the future.
Possible Price Range in the Short-Term
Considering the current market condition and the resistance and support levels appearing, the price of the token will likely remain within a rather tight range in the coming days. Almost all the price movements will require a breakout above resistance or a drop below support, either up or down.
Larger Timeframes and Bearish Divergence
Looking at larger timeframes like daily or 3 day ones, XRP reveals bearish divergence, hence, there are some risks for further downside. Yet the support looking solid lower up should continue to support the price, avoiding sharp declines.
Conclusion
At present, XRP is at a make-or-break moment. Although the cryptocurrency has displayed strength and positive movements in short term, the cryptocurrency faces some challenging resistance levels. These key levels will need to watched closely by traders and investors, especially looking to the $2.50–$2.70 resistance zone and the greater market trends, with a focus on Bitcoin’s correlation with cryptocurrency.
The BIT Journal is available around the clock, providing you with updated information about the state of the crypto world. Follow us on Twitter and LinkedIn, and join our Telegram channel.
Advertisement Banner
Frequently Asked Questions (FAQ)
What are the key resistance levels for XRP?
XRP faces major resistance between $2.50 and $2.73, with a significant hurdle around $2.58. These levels could limit its upward momentum in the short term.
What is the support zone for XRP?
The key support zone for XRP lies between $2.25 and $2.30. As long as the price stays above this range, XRP has the potential to recover or maintain stability.
How does Bitcoin affect XRP’s price?
XRP’s price often mirrors Bitcoin’s movements. If Bitcoin shows sideways action, token is likely to follow suit, making Bitcoin’s price a key indicator for token’s next move.
What is the significance of the Fibonacci retracement level?
The 76.4% Fibonacci retracement level, currently around $2.48 for XRP, is a crucial point. If XRP manages to break above this level, it may signal further price gains.
Appendix Glossary of Key Terms
Support Zone: A price range where an asset typically finds buying interest, preventing the price from falling further.
Resistance Zone: A price range where selling pressure often prevents an asset from moving higher.
Fibonacci Retracement: A tool used by traders to identify potential levels where the price of an asset could reverse, based on key Fibonacci ratios.
Bullish Divergence: A technical signal suggesting that an asset’s price is trending lower, but its momentum indicator is trending higher, hinting at a potential upward reversal.
Bearish Divergence: A situation where an asset’s price is rising but its momentum indicator is falling, suggesting a possible downturn.
Moving Average (MA): A technical indicator that smooths price data to help identify trends over a specified period of time.
References
NEWSBTC – newsbtc.com
CoinPedia – coinpedia.org
Crypto World – Youtube Channel
CoinMarketCap – coinmarketcap.com
TradingView – tradingview.com
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
