XRP Faces Key Resistance at $2.5350 Amid Recovery Attempt

XRP price has mounted a notable recovery from its base above $2.20, mirroring broader market movements seen in Bitcoin and Ethereum. The cryptocurrency successfully surpassed the $2.350 and $2.40 resistance levels, with bulls pushing the price above $2.50 and the 50% Fibonacci retracement level of the downward move from the $2.647 swing high to the $2.190 low. This recovery wave demonstrated significant buying interest as XRP established footing above both the $2.40 level and the 100-hourly Simple Moving Average.

However, the upward momentum encountered substantial resistance near the $2.5350 level, where bears remained active and prevented further gains. The price failed to clear the 76.4% Fibonacci retracement level of the same downward move, indicating that selling pressure intensified at this critical zone. This rejection has forced XRP to move back below $2.50, creating uncertainty about whether the recovery can continue or if a fresh decline is imminent.

The technical picture for XRP presents both opportunities and challenges for traders. A connecting bullish trend line is forming with support at $2.420 on the hourly chart of the XRP/USD pair, according to data from Kraken. This trend line could provide crucial support if the price experiences downward pressure. The presence of this technical pattern suggests that underlying bullish sentiment persists despite the recent resistance encounter.

Critical resistance levels are clearly defined at $2.50 and $2.5350, with the latter representing the immediate barrier that bulls must overcome to reignite upward momentum. Should XRP successfully clear the $2.5350 resistance, the next targets would be $2.580, followed by $2.650, with the next major hurdle potentially emerging near $2.720. These levels represent significant psychological and technical barriers that have historically influenced price action.

On the support side, the $2.420 level anchored by the bullish trend line represents the initial defense for bulls, followed by the crucial $2.40 zone. A break and close below $2.40 could trigger further declines toward $2.350, with additional major support sitting near $2.320. Below this level, the $2.250 zone becomes the next significant support area that could attract buying interest.

Technical indicators present a mixed picture that reflects the current uncertainty in XRP’s price direction. The hourly MACD for XRP/USD is now gaining pace in the bearish zone, suggesting that downward momentum may be accelerating. This bearish MACD reading contrasts with the potentially supportive bullish trend line, creating conflicting signals that traders must carefully navigate.

The hourly Relative Strength Index (RSI) currently sits below the 50 level, indicating that selling pressure may be dominating in the short term. An RSI reading below 50 typically suggests bearish momentum, though it hasn’t yet reached oversold territory that might signal an imminent reversal. This technical configuration leaves room for either continued downward movement or a potential bounce from support levels.

The broader cryptocurrency market context, including movements in Bitcoin and Ethereum, will likely influence XRP’s next directional move. As with many altcoins, XRP often correlates with broader market sentiment, meaning that strength or weakness in major cryptocurrencies could either reinforce or counteract XRP’s current technical setup. Traders are watching these intermarket relationships closely for clues about XRP’s next significant move.