XRP Price Analysis
XRP price started a downside correction below the $3.150 support. The price shows bearish signs and is testing the 50-day simple moving average.
XRP Price Dips Below Key Trend Line
After a steady increase, XRP faced resistance near the $3.650 zone. A high was formed at $3.6614 and the price started a downside correction, like Bitcoin. There was a move below the $3.350 and $3.250 levels.
The bears pushed the price below the 23.6% Fib retracement level of the upward move from the $1.9124 swing low to the $3.6614 high. It increased pressure on the bulls and the price declined below the $3.150 support.
XRP price is now trading just below a major bullish trend line on the daily chart. The last three daily candles suggest an increase in selling, but the bulls are currently active near the 50-day simple moving average (blue).
If the bulls remain active, the price could attempt to recover. Immediate resistance on the upside is near the $3.10 level. The first major resistance is near the $3.1650 level. A close above the $3.1650 level could open the doors for a steady increase.
In the stated case, the price could rise toward the $3.250 level. The next resistance is near the $3.340 level, above which the price could accelerate higher toward the $3.50 resistance. Any more gains might open the doors for a move toward the $3.620 zone.
More Losses?
Conversely, XRP could fail to start a recovery wave and might continue to move down. Immediate support is near the $2.90 level and the 50-day simple moving average (blue). A daily close below the $2.90 support could spark a larger pullback.
The first major support is the 50% Fib retracement level of the upward move from the $1.9124 swing low to the $3.6614 high at $2.786. If the bears push the price below $2.786, the price could gain bearish momentum.
In the stated scenario, the price could decline below $2.50. The main support could be $2.320. If there is a clear move below the $2.320 support, the price could slide toward $2.20. Any more losses could send the price toward the $2.120 support zone.
Overall, XRP price is struggling to stay above $3.00. If the bulls struggle to keep the price above the 50-DSMA, there could be a larger drop toward $2.786 and $2.50. Conversely, the price might bounce back to retest $3.35.