XRP price eases gains: Eyes on critical $2 threshold

XRP price failed to extend gains above the $2.40 zone. The price is down more than 10% and may even decline towards the $2.00 support area.

• XRP price started a downward correction from the $2.50 front area.
• The price is now trading below $2.30 and the 100-hourly simple moving average.
• A connecting bearish trend line is forming with resistance at $2.26 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair may start another uptrend if it clears the $2.32 resistance.

The price of XRP is going down again

XRP price failed to start a new rise above the $2.50 front area. It started a new decline below the $2.35 level Bitcoin and Ethereum. There was a move below the $2.30 and $2.25 levels.

The price went even below the $2.20 support. A low was formed at $1.989 and the price is now correcting some losses. They were converted in the exchange rate of $2.20 to US dollars. The price climbed above the 23.6% Fib retracement level from the $2.64 swing high to the $1.98 low.

The price is now trading below $2.30 and the 100-hourly simple moving average. On the upside, the price may face resistance near the $2.20 level. The first major resistance is near the $2.250 level.

There is also a connecting bearish trend line forming with resistance at $2.26 on the hourly chart of the XRP/USD pair. The next resistance is at $2.30 or the 50% Fib level of the move down from the $2.64 swing high to the $1.98 low. A clear move above the $2.30 resistance could send the price towards the $2.350 resistance.

Any further gains could push the price towards the resistance of $2.40 or even $2.420 in the long term. The next big hurdle for the bulls may be $2.550.

More losses?

If XRP fails to clear the $2.250 protection zone, it could start another decline. Initial support on the downside is near the $2.050 level. The next major support is near the $2.00 level.

If there is a breakdown and close below the $2.00 level, the price could continue to go down to the $1.880 support. The next major support is near the $1.750 area.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Key Support Levels – $2.0500 and $2.0000.

Key Resistance Levels – $2.2500 and $2.3000.

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