XRP Price Analysis: Will $2.40 Be the Key to Unlocking Further Gains?

XRP is showing signs of recovery after finding support near the $1.90 level. The cryptocurrency has retraced some of its recent losses and is now eyeing a potential breakout above a critical resistance zone at $2.35. This development comes after a sharp decline that saw XRP falling below key levels, including $2.25 and $2.05. While the recovery is promising, significant resistance levels remain, and the potential for another downturn cannot be ignored.

Current Market Dynamics

XRP recently experienced a substantial decline that brought its price below the $2.25 mark. This downward movement continued past the $2.05 support level, with the cryptocurrency eventually forming a low around $1.898. However, the price has since started to recover, reclaiming the $2.20 level and climbing above key Fibonacci retracement thresholds.

One notable technical development was the break above a bearish trend line, with resistance at $2.22 on the hourly chart of the XRP/USD pair. This movement suggests a shift in sentiment, as buyers managed to overcome short-term bearish pressure. Currently, XRP has retraced more than 61.8% of its decline, measured from the $2.64 swing high to the $1.898 low, signaling the potential for further upside.

Key Resistance Levels to Watch

The path upward is not without challenges, as XRP faces critical resistance levels that could determine its near-term trajectory.

Immediate Resistance at $2.36

This level represents the first significant hurdle for XRP. A sustained move above $2.36 would demonstrate buyer strength and could act as a catalyst for further gains.

Major Resistance at $2.40

This zone is particularly critical, as it coincides with the 100-hourly Simple Moving Average (SMA). Historically, breaking above the 100-hourly SMA has been a strong bullish signal, suggesting that the market could see renewed buying interest.

Additional Upside Targets

Beyond $2.40, XRP could aim for $2.475, a key level where further bullish momentum might emerge. If this level is cleared, the next targets include $2.55 and $2.65, with the ambitious goal of $2.88 as a potential long-term resistance point.

Support Levels and Decline Risks

While the recovery has gained traction, the risk of another downturn remains if XRP fails to clear the resistance at $2.36. In such a scenario, the cryptocurrency could revisit the following support levels:

Initial Support at $2.15: A break below this level could signal weakening bullish momentum and open the door for further declines.

Major Support at $2.05: This level represents a more significant safety net. If breached, XRP could face a deeper correction, potentially revisiting the $1.88 support level or even testing $1.75.

Technical Indicators

MACD (Moving Average Convergence Divergence): The MACD is currently showing a loss of bullish momentum, though it remains in positive territory. This suggests that buyers still maintain some control, but the rally's strength may be waning.

RSI (Relative Strength Index): The RSI is holding above the 50 level, indicating moderate bullish strength. However, a drop below this threshold could signal increased selling pressure.

Outlook and Conclusion

XRP's recent price action highlights a pivotal moment as it approaches significant resistance near $2.36. A successful breakout above this level could spark a bullish rally, with potential upside targets at $2.55, $2.65, and beyond. Such a move would reinforce confidence among buyers and suggest a continuation of the recovery trend.

Conversely, failure to clear resistance at $2.36 might lead to renewed selling pressure, with support levels at $2.15 and $2.05 coming into focus. Traders should closely monitor these critical zones and watch for confirmation signals from momentum indicators like the MACD and RSI.

Overall, while the recovery is encouraging, XRP remains at a crossroads, with its next move likely to be shaped by broader market sentiment and the strength of its support and resistance dynamics.

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FAQs

What resistance levels are critical for XRP's recovery to continue?
XRP must overcome immediate resistance at $2.36 to sustain its recovery. Further key levels include $2.40 (aligned with the 100-hourly SMA) and $2.475. Breaking above these thresholds could signal a strong bullish rally toward $2.55 and higher targets.

What are the major support levels if XRP fails to maintain momentum?
If XRP faces renewed selling pressure, key support levels to monitor include $2.15 and $2.05. A breach below $2.05 could lead to a deeper correction, potentially revisiting $1.88 or $1.75.

What technical indicators suggest XRP’s near-term outlook?
The MACD shows reduced bullish momentum but remains positive, indicating buyer control. Meanwhile, the RSI is above 50, signaling moderate bullish strength. A drop in either indicator could indicate increased selling pressure.

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