XRP Price Weakens Below 50-DSMA—Is a Deeper Decline Coming?

XRP is struggling to gain pace for a move above the 50-day simple moving average (blue). The price might dive unless there is a close above $2.60.

XRP Price Faces Key Challenges

After a nasty decline, XRP found support near the $1.780 zone. A base was formed and the price started a recovery wave like Bitcoin and Ethereum. There was a move above the $2.00 and $2.20 resistance levels.

The bulls pushed the price above the 50% Fib retracement level of the downward wave from the $3.40 swing high to the $1.780 low. Finally, there was a spike above the $2.50 level before the bears appeared and protected more upsides.

XRP price is still below the $2.50 level and the 50-day simple moving average (blue). The last 3-4 daily candles suggest a decrease in bullish momentum. The price is now consolidating below the $2.50 resistance with a few bearish signs.

If the bulls attempt another increase, they could face resistance near the $2.55 level. The first major resistance is near the $2.60 level and the 50-day simple moving average (blue).

A close above the $2.60 level might decrease the bearish pressure and send the price toward the $2.78 resistance. It coincides with the 61.8% Fib retracement level of the downward wave from the $3.40 swing high to the $1.780 low.

The main resistance is now forming near the $2.880 zone. There is also a key bearish trend line forming with resistance at $2.90 on the daily chart. A close above the $2.90 resistance and the triangle could set the pace for a larger increase. In the stated case, the price could rally and test the $3.20 resistance. The next major resistance is near the $3.40 level.

More Losses?

Conversely, XRP price might struggle to surge above the $2.60 resistance and start another decline. Immediate support is near the $2.20 level. The first major support sits near the $2.1650 level.

A daily close below the $2.1650 level could spark another major decline. In the stated case, the bears might aim for a move toward the $2.00 support. The next target for the bears could be $1.780. Any more losses might send the price toward the $1.5320 support.

Overall, XRP price is consolidating below the $2.50 and $2.60 resistance levels. To start a fresh increase, it must settle above $2.60 and then $2.9. If not, the bears could aim for a drop toward the $2.00 level.

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