XRP Price Springs to Life: Major Support Holds, Bulls Take The Wheel

XRP tested the $1.60 support and recovered over 15%. The price is showing some bullish signs, but it faces hurdles near the $2.50 resistance.

XRP Price Hits Crucial Support And Recovers Ground

In the past few days, the cryptocurrency market saw a major decline despite. Bitcoin, ETH, and XRP saw bearish moves. XRP declined below the $2.50 support to move further into a bearish zone. There was a clear move below the 50% Fib retracement level of the upward move from the $0.4964 swing low to the $3.40 high.

The bears pushed the price below the $2.00 and $1.80 support levels. Finally, the bulls took a strong stand near the $1.60 support zone. They prevented a break below the 61.8% Fib retracement level of the upward move from the $0.4964 swing low to the $3.40 high.

The price is now recovering losses and trading well above the 50-week simple moving average (blue). There was an increase above the $1.80 and $1.85 resistance levels.

The bulls even pushed the price above the $2.00 resistance and the current weekly candle is forming a bullish pattern. If the bulls remain in action and there is a close above the $2.0 resistance, the price could continue to rise.

On the upside, immediate resistance is near the $2.0650 level. The first key resistance is near the $2.120 level. A clear move above the $2.120 level might decrease the bearish pressure. In the stated case, the price might rise and test the $2.350 resistance.

The main stop for the bulls could be $2.50 in the coming weeks. There is also a connecting bearish trend line forming with resistance at $2.50 on the weekly chart.

A weekly close above the trend line resistance could set the pace for a larger increase. In the stated case, the price could revisit the $3.00 resistance zone.

Another Bearish Wave?

Conversely, XRP price might fail to clear $2.120 and continue to move down. Immediate support on the downside is near the $1.820 level. The next key support sits at $1.80, below which the price could gain bearish momentum.

The next key support is $1.720. If the bulls fail to protect this support, the price might accelerate lower toward the $1.60 support zone. Any more losses might spark heavy losses and encourage the bears to move toward the 50-week simple moving average at $1.20.

Overall, XRP price is showing signs of life from the $1.60 resistance. However, the bears might remain active above the $2.20 and $2.250 levels in the near term.