In the ever-evolving world of cryptocurrency, XRP is currently facing a tumultuous period as it struggles to maintain its footing above critical support levels. Despite an initial attempt to rally above the $2.850 zone, XRP has encountered significant resistance, raising concerns about a potential prolonged decline.
XRP’s Rocky Road to Recovery
XRP’s recent price action underscores the challenges it faces. The digital currency managed to break through the $2.90 and $2.92 resistance levels, momentarily outpacing giants like Bitcoin and Ethereum. However, this upward momentum was short-lived. After peaking at $2.995, XRP was swiftly met with bearish pressure, causing a fresh decline. It dipped below the $2.90 support, a level previously seen as a critical threshold for recovery.
This downturn was exacerbated by a break beneath a connecting bullish trend line, which had provided support at the $2.850 mark on the hourly chart of the XRP/USD pair. As the price continued its descent, it formed a low at $2.724, further retreating below the 23.6% Fibonacci retracement level of the recent slide from $2.995 to $2.724. Currently, XRP is trading under $2.840 and the 100-hourly Simple Moving Average, signaling a bearish trend.
Resistance Levels and Potential Recovery
For XRP to reverse its fortunes, it must overcome several formidable resistance levels. The immediate challenge lies at the $2.788 level, with the first significant resistance looming at $2.850. This level coincides with the 50% Fibonacci retracement of the recent decline, making it a crucial pivot point for the bulls. Should XRP manage a decisive move above $2.850, it could pave the way for a rally toward the $2.920 and even the $2.950 resistance levels. However, the ultimate test would be reaching the psychological barrier at $3.00, a level that could invigorate bullish sentiment.
The Threat of Another Decline
On the flip side, if XRP fails to breach the $2.850 resistance zone, it could face further downward pressure. The initial support is pegged at $2.720, but a more significant safety net exists at $2.680. A breach below this level could trigger a cascade of selling pressure, potentially driving XRP down to $2.6150. Below this threshold, the $2.60 zone represents the last major support before the currency could experience a more pronounced bearish momentum.
Technical Indicators and Market Sentiment
Technical indicators paint a rather bleak picture for XRP in the short term. The hourly MACD for the XRP/USD pair is gaining pace in the bearish zone, indicating that sellers currently have the upper hand. Meanwhile, the Relative Strength Index (RSI) has dipped below the 50 level, a sign that the bearish momentum might persist unless there’s a significant change in market dynamics.
Market sentiment remains divided. Optimists argue that the current price levels present a buying opportunity, with potential for upside gains if XRP can break through its resistance levels. On the other hand, skeptics point to the persistent downward pressure and the looming threat of regulatory challenges that could further impede XRP’s recovery.
Navigating the Future
XRP’s immediate future is contingent on its ability to navigate the intricate web of support and resistance levels. While the market’s volatility presents both risks and opportunities, traders and investors must remain vigilant, closely monitoring technical indicators and market trends.
In such uncertain times, having a well-thought-out strategy is crucial. Whether you’re a short-term trader looking to capitalize on price swings or a long-term investor betting on XRP’s broader potential, staying informed and adaptable will be key.
As the crypto landscape continues to evolve, only time will tell if XRP can reclaim its bullish momentum or if it will succumb to further declines. For now, all eyes remain on the $2.850 resistance level—a potential turning point in XRP’s ongoing saga.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
