XRP Price Analysis: Technical Indicators Point to Consolidation Phase

TLDR

• XRP price failed to maintain momentum above $3.20 and entered a downward correction phase
• Price dropped below both $3.050 and the 100-hourly Simple Moving Average, breaking a key bullish trend line
• Current trading shows consolidation after reaching a low of $2.940
• Recovery faces immediate resistance at $3.050 with major resistance at $3.150
• Support levels established at $3.00 and $2.950, with critical support at $2.750

The digital asset XRP has entered a correction phase after failing to sustain momentum above the $3.20 price level. Recent market data indicates a downward shift in price action, with the cryptocurrency testing lower support levels.

Trading data from Kraken shows that XRP experienced increased selling pressure after reaching the $3.20 resistance zone. The price movement mirrors similar patterns seen in other major cryptocurrencies, including Bitcoin and Ethereum, suggesting a broader market trend.

The hourly chart reveals a break below a previously established bullish trend line, which had provided support at $3.120. This technical development marks a shift in the short-term market structure, as prices moved below both the trend line and the 100-hourly Simple Moving Average.

During the recent downturn, XRP prices descended through several key support levels, including $3.15 and $3.12. The selling pressure intensified, pushing the price below the psychological $3.00 mark, reaching a local low of $2.940.

Technical indicators suggest the market is now in a consolidation phase following the recent price decline. The Relative Strength Index (RSI) on the hourly timeframe has moved below the 50 level, indicating a shift in momentum to the bearish side.

The MACD indicator on the hourly chart shows increasing bearish momentum, providing traders with additional confirmation of the current market sentiment. However, this technical setup also suggests the potential for a reversal if support levels hold.

Current price action shows XRP trading above the 23.6% Fibonacci retracement level, calculated from the downward move that began at the $3.207 swing high and extended to the $2.940 low. This slight recovery indicates potential buying interest at lower levels.

The immediate resistance zone appears at $3.050, which coincides with the 50% Fibonacci retracement level of the recent decline. This level may prove crucial for determining the next directional move in XRP’s price.

Should buyers successfully push prices above the immediate resistance, the next major hurdle lies at $3.150. A breakthrough above this level could open the path toward the recent high at $3.20, with further resistance targets at $3.250 and $3.350.

XRP Price on CoinGecko

The market structure suggests that a move above $3.20 could trigger an extended recovery phase, potentially leading to a test of the $3.450 level. However, this scenario depends on sustained buying pressure and overall market conditions.

On the support side, the $3.00 level represents the first line of defense for buyers. This psychological support level’s importance has increased following the recent price action.

Below the $3.00 mark, traders are watching the $2.950 support level closely. A sustained break below this point could trigger additional selling pressure, potentially leading to a test of lower support at $2.880.

The technical setup indicates that if selling pressure intensifies and prices close below $2.950, the next major support zone lies at $2.750. This level could prove critical in maintaining the broader market structure.

Volume analysis shows increased trading activity during the recent price decline, suggesting active participation from market participants at these price levels. The volume profile indicates potential accumulation at lower prices.

The hourly chart’s market structure reveals a series of lower highs and lower lows, typically considered a bearish pattern in technical analysis. However, the consolidation phase at current levels suggests the potential for a shift in this pattern.

Recent trading data indicates decreased selling pressure near the current price levels, suggesting the possibility of price stabilization. Market participants appear to be assessing the situation at these technical levels.

The post XRP Price Analysis: Technical Indicators Point to Consolidation Phase appeared first on Blockonomi.