XRP, one of the leading cryptocurrencies by market cap, is currently facing a critical phase as it struggles to maintain its momentum after a failed attempt to hold above the key resistance zone of $3.330. The recent price action suggests a clear downside correction, with the digital asset falling below important support levels, notably $3.250. As of now, XRP is consolidating within a narrow range, but risks remain skewed to the downside unless strong buying support emerges near $3.080.
Selling Pressure Intensifies
Mirroring the recent bearish sentiment in Bitcoin and Ethereum, XRP has experienced mounting selling pressure after being rejected at the $3.330 resistance zone. The price broke below multiple crucial support levels, including $3.285 and $3.250. More notably, the asset breached a key bullish trend line near $3.240 on the hourly chart (data sourced from Kraken), signaling a weakening bullish structure.
Furthermore, XRP has retraced below the 50% Fibonacci level of the previous bullish wave from the $3.004 low to the $3.330 high. This marks a notable loss of momentum and highlights the fragile state of the short-term bullish trend.
Bearish Technical Signals
Technical indicators are flashing red flags that reinforce the bearish narrative:
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100-Hour Simple Moving Average: The price is now trading below the 100-hour SMA, which has flipped into dynamic resistance.
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Hourly MACD: The Moving Average Convergence Divergence indicator is gaining traction in the negative zone, suggesting persistent bearish momentum.
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Hourly RSI: The Relative Strength Index remains well below the neutral 50 level, pointing to a lack of buying strength and ongoing seller dominance.
Key Resistance and Support Levels
Traders and investors should pay close attention to the following key levels:
Resistance Levels:
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Immediate Resistance – $3.168: A breakout above this level could trigger a minor relief rally toward $3.220.
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Critical Resistance – $3.250: Once a major support, this level now acts as strong resistance.
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Extended Resistance – $3.330 to $3.350: This is the previous swing high zone and a potential area of heavy profit-taking.
Support Levels:
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Immediate Support – $3.080: Aligns with the 76.4% Fibonacci retracement level of the recent move, making it crucial for near-term stability.
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Key Support – $3.050: A break below this threshold could open the door for deeper losses toward $3.020 and even the psychological $3.000 mark. The latter could act as a strong technical base where buyers might step in more aggressively.
Potential Scenarios
Bullish Scenario:
If XRP can hold above the $3.080 support and manage to reclaim the $3.220 resistance, it could signal a resumption of the upward trend. In such a case, the next short-term targets would be $3.250 and eventually $3.330, where the market’s confidence would be retested.
Bearish Scenario:
On the flip side, if the price breaks below $3.050, it could signal a continuation of the bearish trend. This would likely lead to a decline toward $3.020 and possibly $3.000, where a technical bottom might form — assuming sufficient buyer interest.
Conclusion
XRP is at a pivotal point. The failure to sustain key support levels has exposed the cryptocurrency to further downside risks. While there is still hope for a recovery if buyers defend $3.080 and push prices above $3.220, the short-term outlook remains bearish unless proven otherwise.
For now, market participants should closely monitor the $3.080 and $3.050 levels, as they are likely to determine the next major move for XRP. Caution is advised, especially if the broader market sentiment remains fragile.
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