XRP Price Warning: Larger Correction Looms After Recent Weakness

XRP price is struggling to clear the $3.080 resistance zone. The price is now declining and might extend losses if it drops below $2.920.

XRP price is correcting gains from the $3.080 resistance. The price is now trading near $2.9650 and the 100-hourly Simple Moving Average. There is a key bearish trend line forming with resistance at $3.020 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair could continue to decline if it stays below the $3.050 zone.

XRP Price Faces Hurdles

XRP price started a downside correction from $3.0850, like Bitcoin and Ethereum. The price traded below the $3.0650 and $3.050 levels.

The bears were able to push the price below $2.980 and the 100-hourly Simple Moving Average. Moreover, there was a spike below the 50% Fib retracement level of the upward move from the $2.824 swing low to the $3.080 high.

The price is now trading below $2.9650 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance at $3.020 on the hourly chart of the XRP/USD pair.

If the bulls protect the $2.920 support, the price could attempt another increase. On the upside, the price might face resistance near the $3.00 level. The first major resistance is near the $3.020 level. A clear move above the $3.020 resistance might send the price toward the $3.080 resistance. Any more gains might send the price toward the $3.120 resistance. The next major hurdle for the bulls might be near $3.150.

More Losses?

If XRP fails to clear the $3.020 resistance zone, it could continue to move down. Initial support on the downside is near the $2.920 level or the 61.8% Fib retracement level of the upward move from the $2.824 swing low to the $3.080 high. The next major support is near the $2.8850 level.

If there is a downside break and a close below the $2.8850 level, the price might continue to decline toward $2.80. The next major support sits near the $2.780 zone, below which the price could gain bearish momentum.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.920 and $2.840.

Major Resistance Levels – $3.020 and $3.080.