XRP Price Correction at $2.20: Key Support Levels Signal Market Direction
XRP’s price trajectory has entered a critical phase as the digital asset undergoes a correction after reaching $2.250. This technical analysis examines the key support and resistance levels that could determine XRP’s next major move.
As highlighted in our recent analysis XRP Price Eyes $3.40 Target as Bulls Defend $2 Support Level, the broader uptrend remains intact despite current pullback signals.
Current Market Structure Analysis
The recent price action shows several critical developments:
- Break below the 100-hourly Simple Moving Average
- Violation of bullish trend line at $2.140
- Price trading below 50% Fibonacci retracement level
- Key support zone established at $2.050
Critical Support and Resistance Levels
Traders should monitor these key price levels:
Resistance Zones
- Primary resistance: $2.120
- Secondary resistance: $2.180
- Major breakout level: $2.250
- Extended target: $2.320-$2.350
Support Zones
- Immediate support: $2.050
- Critical support: $2.000
- Secondary support: $1.920
- Major support: $1.840
Technical Indicators Analysis
The current technical setup shows mixed signals:
- MACD: Gaining momentum in bearish territory
- RSI: Trading below 50, indicating bearish pressure
- Moving Averages: Price below 100-hour SMA suggests short-term weakness
Potential Scenarios
Bullish Case
A break above $2.120 could trigger a rally toward $2.250, with potential extension to $2.350. This scenario requires:
- Strong buying volume
- Break above 100-hour SMA
- RSI recovery above 50
Bearish Case
Failure to hold $2.050 support could lead to:
- Drop to $2.000 psychological level
- Further decline toward $1.920
- Possible test of $1.840 support
FAQ Section
What’s causing the current XRP price correction?
The correction appears technical in nature, following a strong rally above $2.20. Market indicators suggest profit-taking and a natural pullback phase.
Will XRP hold the $2.00 support level?
Technical indicators and trading volume suggest strong buyer interest near $2.00, making it a crucial support level for maintaining the broader uptrend.
What’s the next major target for XRP price?
If bulls maintain control above $2.120, the next major targets are $2.250 and $2.350, with potential for further extension toward $2.50.
Conclusion
While XRP faces short-term bearish pressure, the overall market structure remains constructive above $2.00. Traders should monitor the identified support and resistance levels for potential trading opportunities, with particular attention to volume patterns and technical indicator convergence.