XRP's price has fallen back from the gains it made during Sunday's rally that followed former President Donald Trump's announcement about including the cryptocurrency in a strategic reserve. Following this correction, crypto analyst Trade City has identified key support levels that could determine XRP's future price movement.
Trade City highlighted $3.06717 and $1.67220 as critical support levels for XRP on the weekly timeframe in a recent TradingView post. The analyst noted that after bouncing along an ascending trendline, XRP confirmed its breakout above $0.73056. This sparked the main bullish movement that sent the cryptocurrency up to $3.06717.
"The $3.06717 mark represents the all-time high and a major supply zone," Trade City remarked. He suggested the next bullish phase could begin if XRP maintains a position above this level. Should a price correction occur, the analyst stated that $1.67220 remains the only viable key support on the weekly timeframe.
According to Trade City, the Relative Strength Index oscillator has exited overbought territory and returned to normal levels. The analyst asserted that a bullish scenario becomes more likely if the RSI moves back into overbought conditions.
In his daily timeframe analysis, Trade City identified a strong bearish divergence on the RSI. This formed as XRP's price moved sideways between $2.02967 and $3.30467.
The trigger for this bearish divergence would be a break below $2.02967, which hasn't occurred yet. Trade City warned this support break could happen soon due to declining trading volume. If this range breaks downward and support at $2.02967 fails, XRP could experience a deeper correction toward key Fibonacci levels at 0.382, 0.5, and 0.618.
These Fibonacci levels represent strong support zones that could prevent further selling pressure, according to the analyst. On the bullish side, if XRP breaks upward from its current range, Trade City believes a new bullish phase will begin, potentially pushing the cryptocurrency toward targets as high as $4. This would mark a new all-time high for XRP.
At press time, XRP is trading at approximately $2.50, representing a decline of over 12% in the past 24 hours.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.