Technical Analysis: Key Levels and Indicators

XRP/USD has triggered a debate as the digital asset could not follow through past the $3.30 price level in the recent trading period among traders in the digital space. After this resistance, XRP has started correction and the market is unsure whether this is just a correction before an upper move or a start of reversal. It’s now time to dive into its technical aspects and define factors that may contribute to XRP’s near future course.

XRP Price Struggles Above $3.30

After an outstanding rebound, XRP faced the next crucial resistance level at $3.30. It gradually rose and even spiked above the $3.250 point before starting its downward spiral. But negative sentiments started appearing at upper levels the upward movement was stopped and correction began.

The price stagnation below the $3.30 resistance level is seen as a failing point for XRP as investors now eagerly await a bullish reversal or continuation. This paradigm shift is happening at a time when the broader cryptocurrency market is on a Glyder, thanks to the Bitcoin Dominance affecting the otherwise favorite altcoins such as Ripple (XRP).

Technical Analysis: Key Levels and Indicators

• Break Below Key Support Levels

The price of XRP has been having trouble staying above higher ground as it declined below a critical level of $3.20. A bearish trend line that connected the two lower exhaustion points was taken out, and support at $3.1450 on the hourly chart was also penetrated. This trend line break will give bearish importance in the short term and may reverse the current scenario.

It also formed bearish gravitation below the 50% Fibonacci retracement level of the recent upmove from the $3.012 level to the $3.285 level. This correction, of course, negates near-term buying interest at the higher levels that would have put to rest the bears based on the price action of the previous rally.

• Current Price Action

Currently, XRP is trading below $3.20 as well as below the 100-hourly SMA indicating the near-term bullish sentiment is weak. The cryptocurrency is tested at the area of the 61.8% retracement level of the recent upmove. This level near $3.120 is considered to be strong support at this level. Further downside below this zone may challenge psychological support at $3.00.

• Resistance Levels to Watch

On the flip side, XRP has an upward catalyst with immediate resistance at $3.150. Apart from that, the first significant barrier is at the $3.20 level where 100-hourly SMA lies. Anything below or above $3.250 may serve as the next resistive level if the price successfully retakes this area.

If the price goes above $3.250 it might lead XRP toward $3.30, and much higher values could focus on $3.4250 or $3.50. But as things stand in the market now, these levels are likely to prove to be major hurdles for the bullish trader.

Bearish Risks: Support Levels to Monitor

• $3.120 Support Zone

XRP is, at the moment, stabilizing just above the $3.120 support level which will prevent further declines. A violation of this area may lead to a bearish continuation and bring the price down to the next major support level at $3.00.

• $3.00 Psychological Support

We also have psychological points for price change, and $3.00 is crucial as its violation will lead to a deeper decline in the price. Sellers are bidding at a faster rate and if momentum is created whereby the price closes below $3.00 then it will turn into bear territory. In this case, the next areas of congestion to look at would be $2.880 or $2.750. A breakdown towards these levels can signal a reversal which may negate most of the current year’s advance.

Technical Indicators Point to Mixed Momentum

The technical indicators paint a mixed picture for XRP:

• Hourly MACD:  XRP/USD is still bearish since the MACD line is increasing in the negative territory on the 4H time frame Moving Average Convergence Divergence (MACD). This points towards a possibility of an extension of the bear run if demand is not going to be kicked up anytime soon.
• Hourly RSI: Everything is showing ‘bearish’, and the Relative Strength Index is below 50. Getting back above the 50 level would be a positive indication that buying is active again.

Healthy Pullback or Reversal?

The recent price action in XRP has some market participants pondering if this week’s correction could lead to another leg up in this altcoin or be a sign of a deeper reversal. Key factors influencing this outcome include:

• Market Sentiment: This is more evident because Bitcoin dominance still reigns supreme over altcoins that include XRP. A new focus on altcoins might be helpful to XRP to regain higher levels because when attention in the market transitions back to altcoins this currency might gain much-needed momentum to climb back to those levels.
• Volume and Buyer Interest: Much will depend on the buyers’ interest at the main demand levels, $3.120 and $3.00, to avoid a deeper pullback. Also, the absence of volume could add more downside pressure in these scenarios.
• Broader Market Trends: The broader cryptocurrency market trend that is informed by macros factors and the regulatory environment will however be instrumental in setting out the future direction of XRP.

What’s Next for XRP?

• Bullish Outlook

In this case, if XRP stays above $3.120, investors may look to hurdle the resistance at $3.20 to kick start the next upward movement. Any move above $3.250 would provide the entry level for the retest of $3.30 level. Some more pro-BTC buying sentiments may bring the price to around $3.4250 and possibly $3.50 over the near term.

• Bearish Scenario

On the one hand, a level below $3.00 might increase selling pressure. In this case, the price could test the $2.880 support level and if bear pressure continues to rise then merchants could see XRP trade as low as $2.750.

XRP at a Crossroads: Key Levels to Watch

Analyzing XRP price in the recent past reveals a major issue for the cryptocurrency as it fails to sustain its bulls. Although the current retracement might be simply a pullback to the middle of the range and a normal retraction after a sharp upturn, specific levels will define if this is just a start of the next up leg or the start of a bigger correction.

The trader and investors should pay attention to the XRP price action around $3.120 support level and $3.20 resistance level. A specific directional move will determine the near-term trend in the market for this cryptocurrency. For now, the market stays uncertain, and the XRP’s further development will depend on the market’s trends and users’ attitudes.