Ripple’s XRP has experienced a slight decline of over two percent, currently trading below the crucial $2.40 level. In order for XRP to sustain its positive momentum, it must maintain above the current support levels, specifically at $2.29. It is important to note that XRP, much like other major altcoins, tends to follow the price movements of Bitcoin. Should Bitcoin see a temporary rebound, we may witness similar trends in altcoins such as XRP.
A Potential Pullback or Minor Slowdown on the Horizon?
While a bearish divergence could indicate a potential pullback, it doesn’t always result in a significant drop. At times, it may lead to a minor slowdown, as seen in the current resistance at around the $2.50 mark. With XRP nearing a critical resistance point and displaying this cautionary signal, it might not be the ideal moment to initiate new long positions. In fact, it could be wise to consider taking some profits from existing positions at this time.
Identifying Support and Resistance Levels
The price is currently facing resistance at $2.70 and $2.63, with additional resistance points at $2.58 and $2.53. There has been some hesitation observed in the 3-10 day moving average crossover, as well as in the raw stochastic levels at 80% and 70%.
Moreover, the price recently surpassed the 18-day moving average at $2.41, with the 38.2% retracement from the 4-week high standing at the same level. Further support can be found at $2.40 (first support point) and $2.35 (second support point), with a 50% retracement from the 4-week high/low at $2.31. The 9-day moving average also encountered resistance at $2.33.
In terms of additional support levels, they are identified at $2.27 and $2.19, where the price intersects the 9-day moving average. Deeper support is available at $2.20 and $2.11, with oversold conditions noted in the raw stochastic levels at 20%.
In conclusion, while XRP faces some resistance levels and a potential pullback, it is essential to closely monitor the support and resistance points to make informed trading decisions. By staying updated on the market trends and technical indicators, traders can navigate the current market conditions effectively.