XRPUSD recently experienced a significant decline, dropping to a low near $1.95 before finding strong support at that level.
Price has since staged a recovery, forming what appears to be a potential reversal pattern on the 4-hour time frame, suggesting that bulls may be regaining control after the recent downtrend.
Key XRPUSD Levels to Watch
After dipping below the descending channel’s lower boundary, XRP found strong buying interest around the $1.95 support level, which has sparked a recovery rally that has pushed the price back up to the current level of $2.05, representing a notable bounce from recent lows.
The price action has formed a potential bottoming pattern, with the recent recovery suggesting that sellers may be losing momentum. However, XRP still faces significant resistance overhead, with several key Fibonacci retracement levels serving as potential barriers to further upside.
The Fibonacci retracement tool applied to the recent decline shows several key resistance levels that traders should monitor:
- The 38.2% Fibonacci retracement at $2.06539 is currently being tested
- The 50% retracement level at $2.09836 represents the mid-point of the recent decline
- The 61.8% Fibonacci level at $2.13133 could act as significant resistance if reached
These Fibonacci levels are likely to act as important technical barriers, with sellers potentially entering or adding to positions around these zones.
XRPUSD Technical Analysis
The chart shows the presence of both the 100 SMA and 200 SMA (Simple Moving Averages). Currently, the price is trading below both of these important moving averages, which typically indicates bearish momentum from a technical standpoint.
However, the recent bounce suggests that buyers are attempting to challenge this bearish bias. If XRP can break above the 38.2% Fibonacci level decisively, it may target the 100 SMA as the next significant resistance level. The narrowing gap between the two moving averages suggests potential volatility ahead, with traders watching for a potential crossover that could signal a shift in the medium-term trend.
The Stochastic oscillator (14, 3, 3) is currently moving upward after recently bouncing from oversold territory. This indicates increasing bullish momentum in the short term, providing support for the current recovery attempt. If the Stochastic maintains its upward trajectory, it could help propel XRP toward higher Fibonacci resistance levels.
The MACD (12, 26, close) is also showing signs of improvement, with the histogram bars turning green and increasing in size, suggesting building bullish momentum. The MACD line appears to be crossing above the signal line, which is typically interpreted as a bullish signal that could support further upside in the near term.
XRPUSD Price Outlook
If XRP can maintain momentum above the current level and break through the 38.2% Fibonacci resistance at $2.06539, the next targets would be the 50% retracement at $2.09836, followed by the 61.8% level at $2.13133. A break above these levels, especially with confirmation from the oscillators, could signal a potential trend reversal and open the path toward higher levels.
On the downside, failure to overcome the 38.2% Fibonacci resistance could lead to renewed selling pressure, with the recent low of $1.95 serving as crucial support. A break below this level could signal continuation of the broader downtrend, potentially targeting lower support zones.
From a broader perspective, XRP appears to be trading within a large descending channel on the 4-hour chart. While the current bounce is encouraging for bulls, a significant break above the upper boundary of this channel would be needed to confirm a more substantial trend reversal.
