XRP Battles to Stay Afloat Above $2.30

Ripple’s XRP is walking a tightrope as it struggles to hold key support levels. After gaining over 1% in the past 24 hours, the token is attempting to reclaim ground above $2.30.

In the ever-shifting cryptocurrency landscape, Ripple’s XRP is attempting to walk a tightrope as it struggles to hold key support levels and maintain any upward momentum. After a 1% gain in the past 24 hours, the token is slowly reclaiming ground above the $2.30 mark. However, with a looming bearish divergence and a lack of bullish signals, many traders are left pondering: Is this just a temporary bounce, or is a deeper drop on the horizon?

XRP Battles to Stay Afloat Above $2.30

XRP’s recent price movement has been a tale of resilience and uncertainty. The altcoin saw a brief rally, pushing it close to the $2.30 level. However, despite this small recovery from crucial support, technical analysis suggests that the token has yet to show any definitive signs of a full-fledged bullish breakout.

Crucially, analysts observed that XRP is still largely in a bearish divergence, a pattern that has been unfolding for several months now. While short-term traders may notice oversold conditions in the 4-hour chart, which could present opportunities for counter-trend trades, the broader trend suggests that XRP could still be vulnerable to further downside from a broader time frame perspective.

Looking ahead, if XRP manages to stay afloat and break above the $2.30 resistance, it could then encounter another resistance level at $2.50. A sustained move above this zone might open the door for a steeper rally toward the $2.65-$2.80 range, where stronger sellers are anticipated.

However, if XRP fails to hold this support and flips back into resistance, then the next major support zone is between $1.95 and $2.05. Breaking below this area could indicate a deeper drop toward the $1.50-$1.60 range, which is crucial for determining whether XRP stays in its current range or takes a steeper downturn.

Key Support and Resistance Levels in Play

A closer look at XRP’s 8-hour chart reveals a crucial battle between bulls and bears as the cryptocurrency attempts to stay afloat above a crucial support zone. Having dipped slightly to reach the lower boundary of the $2.25-$2.30 support, which was previously resistance, XRP is now attempting to establish a foundation for another move higher.

After testing the resistance-turned-support zone, the cryptocurrency experienced a small decline, bringing it close to the $2.23-$2.24 support. A break below this level could quickly put the next major support zone, located between $1.95 and $2.05, back in play.

However, XRP managed to stay afloat and rebound slightly, indicating that buyers are still present within this support zone. This move is crucial as it could determine whether XRP stays in its current range or takes a steeper downturn.

Moreover, the cryptocurrency is also approaching a confluence of technical indicators that suggest a potential shift in momentum. As the 200 exponential moving average (EMA) threatens to cross below the 100 EMA, traders are closely monitoring this development.

A decisive crossover could serve as a bearish signal, further indicating that the cryptocurrency is losing steam and might be setting the stage for further declines.

Despite the cryptocurrency’s recent struggles, it’s worth noting that it has managed to remain afloat above the crucial support zone. A break below this area could quickly put the next major support zone, located between $1.95 and $2.05, back in play.

However, if XRP manages to stay afloat and break above the $2.30 resistance, it could then encounter another resistance level at $2.50. A sustained move above this zone might open the door for a steeper rally toward the $2.65-$2.80 range, where stronger sellers are anticipated.

Overall, XRP is at a critical juncture, and the coming days could determine whether the cryptocurrency sinks below crucial support or manages to stage a surprise bullish reversal.