XRP price is showing bearish signals as it tests a crucial support level at $2.08, with technical indicators suggesting potential for further downside movement. As previously reported, the $2.13 support level remains critical for any potential relief rally.
Key Technical Levels for XRP
The digital asset is currently facing several technical hurdles:
- Immediate resistance at $2.220
- Trading below the 100-hourly Simple Moving Average
- Bearish trend line resistance at $2.2180
- Critical support zone: $2.080-$2.120
Market Structure Analysis
The current price action shows a clear bearish pattern forming on the hourly chart. XRP has formed a series of lower highs and lower lows, with the most recent swing high at $2.3540 failing to maintain momentum. The 23.6% Fibonacci retracement level has been breached, suggesting increased selling pressure.
Support and Resistance Levels
Key levels to watch:
| Type | Level | Significance |
|---|---|---|
| Major Resistance | $2.220 | Previous support turned resistance |
| Secondary Resistance | $2.250 | Weekly pivot point |
| Critical Support | $2.080 | Must hold to prevent deeper correction |
Technical Indicators
Multiple technical indicators are flashing warning signals:
- MACD: Gaining bearish momentum
- RSI: Below 50, indicating bearish control
- Moving Averages: Price below 100-hour SMA
Potential Scenarios
Two primary scenarios are likely to unfold:
- Bearish Case: Break below $2.080 could trigger a cascade to $2.00
- Bullish Case: Recovery above $2.220 might target $2.3250
FAQ
What is the key support level for XRP?
The critical support level is at $2.080, which must hold to prevent a deeper correction.
Can XRP recover in the short term?
A break above $2.220 resistance could trigger a recovery toward $2.3250.
What technical indicators should traders watch?
Focus on the MACD, RSI, and the 100-hour SMA for trading signals.
Disclaimer: This article is not financial advice. Always conduct your own research and risk assessment before trading.