XRP price attempted a fresh increase above the $2.150 resistance zone. However, it faced hurdles near $2.365 and is currently correcting gains.
XRP Price Recovery Seems To Be Fading
In the last analysis, we discussed a steady increase in XRP and an upside break above the $2.00 resistance zone. The bulls were able to push the price above the $2.150 and $2.20 resistance levels. There was also a clear move above the 61.8% Fib retracement level of the downward move from the $2.5950 swing high to the $1.6155 low.
However, the bears were active near the $2.365 zone. A high was formed at $2.3635 and the price is now correcting gains like Bitcoin. There was a move below the 23.6% Fib retracement level of the upward move from the $1.6155 swing low to the $2.3635 high.
XRP price also declined below a key rising channel with support at $2.20 on the daily chart. More importantly, there was a close below the $2.20 support and the 50-day simple moving average (blue).
There are a few bearish signs suggesting the bulls are losing their grip. If they attempt a fresh increase, they could face resistance near the $2.20 level and the 50-day simple moving average (blue). The first major resistance is near the $2.250 level.
The main resistance is now near the $2.350 zone. There is also a connecting bearish trend line forming with resistance at $2.350 on the same chart. A convincing close above the $2.350 zone could set the pace for a larger increase. The next resistance is near the $2.60 level, above which the price could accelerate higher toward the $2.850 resistance. Any more gains might open the doors for a move toward the $3.00 handle.
More Downsides?
Conversely, XRP price might continue to move down if it stays below $2.20. Immediate support is near the $2.050 level. The first major support sits near the $2.00 level. The next major support is near the $2.00 level.
A daily close below the $2.00 level could spark another major decline. In the stated case, the bears might aim for a move toward the $1.90 support and the 61.8% Fib retracement level of the upward move from the $1.6155 swing low to the $2.3635 high. The next target for the bears could be $1.780, below which the price might gain bearish momentum.
Overall, XRP price is correcting gains below the $2.20 support zone. If the bulls fail to protect the $2.00 support, there could be a shift in the trend in the short-term.