XRP price has recently recovered most of its losses, rallying towards the $2.75 level. However, the cryptocurrency is now facing significant hurdles near the $2.70 zone, which could potentially lead to another decline in the near future.
The recent upward move saw XRP price break above the $2.60 level, gaining pace for a move above the $2.00 and $2.25 resistance levels. The bulls managed to pump the price above $2.50 and $2.55, but the bears remained active below the critical $2.80 level.
Technical analysis of the XRP/USD pair on the hourly chart reveals a new connecting bearish trend line forming with resistance at $2.710. If XRP fails to clear this resistance zone, it could trigger another decline, with initial support on the downside near the $2.420 level.
The key support levels to watch out for are $2.2650, which is the 50% Fib retracement level of the upward move from the $1.750 swing low to the $2.780 high, and the $2.050 zone. A downside break and close below these levels could see XRP continue its decline towards the $2.20 support.
On the upside, a clear move above the $2.80 resistance might send the price towards the $2.940 resistance, with potential for further gains towards $3.000 or even $3.050 in the near term. However, the bulls will need to overcome the major hurdle at $3.120 to sustain any significant upward momentum.
The current market sentiment for XRP remains uncertain, with the price now trading below the 100-hourly Simple Moving Average and the RSI (Relative Strength Index) dipping below the 50 level. The MACD for XRP/USD is also gaining pace in the bearish zone, suggesting that the bears may be gaining control.
As the XRP price faces this critical resistance, investors and traders should keep a close eye on the key support and resistance levels, as a decisive break in either direction could set the tone for the cryptocurrency’s near-term price action.
Tags: XRP price, Ripple, technical analysis, crypto markets, price prediction
Source: https://www.newsbtc.com/analysis/xrp/xrp-price-tests-critical-barrier-2-8/