XRP Price Outlook: Recovery Attempts Face Strong Resistance as Key Support Levels Hold

XRP price movement remains stabilised as it's attempting to build momentum after a sharp corrective phase. Along with the latest selling pressure, XRP dropped below the $2.20 level and briefly tested lower levels near $2.00before attracting buyers near a key support zone.

Recent Price Action

XRP continued its downtrend after it was unable to sustain the price above the $2.25 level. The selling pressure pushed the prices below $2.20 to $2.13, entering into a bearish phase in the near term.

The decline accelerated toward the $2.06 area, where buyers stepped in, forming a local low near $2.063.

The token saw a rebound from the $2.06 level after the buyers came in, reclaiming $2.12 and breaking short term bearish trendline in the hourly chart.

However, after this short rise, XRP remains below $2.20 and also below the 100-hour simple moving average, suggesting that the bulls have not yet fully taken over.

Key Support and Resistance Zones

The immediate support is at $2.08, followed closely by $2.05. During the recent correction, these prices have been the short-term demand zones.

If the price goes down further and breaks below $2.05, that could lead to XRP losing value towards the psychologically important $2.00 level.

If the price breaks $2.00, it may drift slowly downwards to the $1.96-$1.88 area, which is a stronger medium-term support zone based on the previous price action.

XRP is now trading slightly over the 50-day EMA, at $2.13, and a level where historically buyers come in.

At the top end, XRP has immediate resistance at $2.17, a minor supply zone. The strongest resistance remains at $2.20, where the price has been repeatedly rejected in the last few sessions.

A strong close above $2.20 would improve short-term sentiment and open the door for a move toward $2.24, followed by $2.28.

In case of a strong move up above this area, it would indicate a shift in momentum, along with the potential for XRP to reach $2.40.

Also Read: XRP vs Bitcoin: Rare Ichimoku Breakout Signals Potential XRP Rally

Indicators

XRP, just like Bitcoin and Ethereum, is backed by its momentum indicators (RSI and MACD), which are showing bullish signals and support a recovery outlook.

Currently, RSI is at 56.65, above the neutral level of 50 and signifies a transition from being neutral to slightly bullish.

A bullish trend is confirmed by the MACD, which has crossed above the signal line as well as the histogram, moving into positive territory, indicating an increase in momentum.

Outlook

After the recent drop, XRP is still in a consolidation stage. If the price stays above the $2.05-$2.07 support area, then a recovery to $2.20 and higher will still be possible. On the other hand, if the token fails to break key resistance levels, it may remain stuck in a range or even be subjected to fresh downward pressure in the short run.