XRP is currently trading within an ascending channel pattern on the short-term chart, showing signs of a pullback after testing the upper boundary. Price action suggests the cryptocurrency is finding support at key Fibonacci retracement levels, with the 50.00% Fib around $2.2667 serving as immediate support.
The recent price action shows XRPUSD pulling back from its April high of approximately $2.36, creating a potential bullish reversal zone between the 50.00% and 61.80% Fibonacci retracement levels at $2.2667 and $2.2371 respectively. This area has already demonstrated buying interest, with price currently holding above the 38.20% retracement at $2.2843.
Recall that XRPUSD previously broke through a longer-term descending trend line, suggesting that a major reversal from the selloff could be in order.
XRPUSD Technical Outlook
Looking at the moving averages, the price remains above both the 100 SMA and 200 SMA, indicating that the path of least resistance is still to the upside. The gap between these moving averages remains positive, reinforcing the bullish momentum in the medium term. The current price action shows XRPUSD using these dynamic support levels as a foundation for potential continuation of the uptrend.
The stochastic oscillator is showing signs of turning higher from the middle range, suggesting that bullish momentum may be re-emerging. This indicator hasn’t reached the oversold territory, indicating that the recent pullback may be shallow and temporary rather than a significant trend reversal.
The MACD indicator (represented by the blue and orange lines in the lower panel) shows a narrowing gap, but hasn’t yet formed a bearish crossover. This suggests that while momentum has slowed, the overall bullish bias remains intact for now. The histogram bars have been shrinking, pointing to diminishing bearish pressure.
XRPUSD Price Targets
If XRP can hold above the 50.00% Fibonacci level at $2.2667, we could see a resumption of the uptrend toward resistance at the 0.00% Fibonacci level near $2.3607. A daily close above this level could signal a continuation toward the channel’s upper boundary with potential targets above $2.40.
However, failure to maintain support at the 61.80% Fibonacci level could trigger a deeper correction toward the 100.00% retracement level at $2.1607, which coincides with the lower boundary of the ascending channel. This level represents a critical zone for the bulls to defend to maintain the integrity of the current uptrend.
While the short-term outlook shows a pullback in progress, the medium-term trend remains bullish as long as price stays within the confines of the ascending channel. Traders should watch for reversal candlestick patterns at key Fibonacci levels for entry opportunities, while being mindful of the overall market sentiment, particularly in relation to Bitcoin’s price action which continues to influence the broader cryptocurrency market.
In addition, XRPUSD could draw bullish interest from the upcoming launch of XRP ETF futures by ProShares. According to the firm’s latest filing, the April 30 launch date has been confirmed and could attract more market interest and liquidity for XRP, possibly paving the way for steeper price rallies.
