XRP has displayed significant volatility over the past month, forming a clear V-shaped recovery pattern after a sharp decline in early May.
The digital asset recently tested highs at $2.48350 before experiencing a pullback, and now appears to be attempting another recovery move above key Fibonacci retracement levels. With price action showing resilience, traders are watching to see if XRP can maintain its upward momentum.
Key XRP Fibonacci Levels
After declining to a low around $2.07235 in early May, XRP staged a strong rally, breaking through several resistance levels to reach the recent high near $2.48350. The swift nature of this upward move suggests strong buying interest emerged at these lower levels, completely reversing the previous bearish sentiment.
Currently trading at $2.40494, XRP is pulling back from the recent high but finding support above the 38.2% Fibonacci retracement level at $2.32644. This price zone is proving critical for the short-term trend direction, as it represents the first significant support level from the recent highs.
Other key Fibonacci retracement levels to watch include the 50% level at $2.27792 and the 61.8% golden ratio level at $2.22941. These levels form a substantial support zone between $2.22-$2.33, which could determine whether the current uptrend continues or a deeper correction unfolds.
The chart also shows two horizontal blue zones that represent historical support and resistance areas. The upper zone around $2.32-$2.35 aligns closely with the 38.2% Fibonacci level, reinforcing its importance as a key support region. A sustained break below this zone could accelerate selling pressure toward the lower support levels.
Technical Indicators Signal Mixed Momentum
The moving averages on the chart provide insight into the overall trend direction. The 100 SMA (blue line) has recently crossed above the 200 SMA (red line), generating a bullish signal that suggests the longer-term trend remains positive despite short-term volatility. Both moving averages are now sloping upward, with price action maintaining position above these dynamic support levels.
However, momentum indicators present mixed signals that warrant caution. The MACD indicator in the middle panel shows that momentum has been declining, with the histogram bars shrinking and the blue line crossing below the orange signal line. This bearish crossover suggests diminishing bullish momentum and potentially more consolidation or correction ahead.
The stochastic oscillator in the bottom panel is currently rising from the midpoint of its range, having recently bounced from oversold territory. This indicates renewed buying interest after the recent pullback. If the stochastic continues its upward trajectory into the overbought zone, it could confirm that bulls are regaining control of the market.
Traders should monitor for any reversal candlestick patterns near the current levels or confirmation of support at the Fibonacci levels. A daily close below the 61.8% Fibonacci level at $2.22941 would suggest a deeper correction toward the 100% level at $2.07235, which coincides with the lower range support zone on the chart.
Market participants should also stay alert to broader crypto market sentiment and any XRP-specific developments, particularly the pending SEC ruling on XRP ETFs, that could impact price action as regulatory news has historically created significant volatility for this digital asset.
