XRP cryptocurrency began showing signs of recovery Tuesday after falling below the critical $3.20 support zone, with technical indicators suggesting a potential bullish reversal if the digital asset can maintain momentum above key threshold levels.
What to Know:
- XRP dropped below multiple support levels including $3.250 and $3.220, testing the 76.4% Fibonacci retracement level near $3.080
- The cryptocurrency broke above a bearish trend line with resistance at $3.120, signaling potential recovery momentum
- Technical indicators show mixed signals with RSI above 50 but MACD losing pace in bearish territory
Technical Recovery Signals Emerge
The cryptocurrency experienced a sharp correction that pushed prices below the $3.30 zone, distinguishing it from Bitcoin and Ethereum's performance during the same period. XRP's decline breached the 50% Fibonacci retracement level of the upward move from the $3.004 swing low to the $3.330 high.
Bears drove the price below the $3.120 support zone before bulls emerged near the $3.080 level. This level corresponds to the 76.4% Fibonacci retracement of the recent upward movement.
The recovery found initial footing when XRP broke above a bearish trend line with resistance positioned at $3.120 on the hourly chart.
Current trading activity places XRP below both the $3.20 level and the 100-hourly Simple Moving Average. The immediate resistance sits near $3.170, with the first major hurdle at $3.20.
Critical Resistance and Support Levels
A decisive break above the $3.20 resistance could propel XRP toward the $3.250 resistance level. Additional gains might target the $3.330 resistance or potentially reach $3.350 in the near term, with the next major obstacle for bulls positioned around $3.40.
However, failure to clear the $3.20 resistance zone could trigger another decline. Initial downside support remains near $3.080, followed by major support at $3.020. A breakdown below $3.020 could extend losses toward the $3.00 support level, with the next significant support zone located at $2.980 where bulls might mount a defense.
Technical indicators present a mixed picture. The hourly MACD is losing momentum in bearish territory, while the Relative Strength Index has moved above the 50 level. Major support levels stand at $3.080 and $3.020, with primary resistance at $3.170 and $3.20.
Closing Thoughts
XRP's ability to maintain position above the $3.080 zone will likely determine whether the current recovery can develop into a sustained bullish reversal. The cryptocurrency faces immediate challenges at multiple resistance levels that must be cleared for upward momentum to continue.