XRP Price Faces Key Resistance at $2.50, Risk of Decline

XRP price attempted a recovery wave from the $2.20 support level, mirroring broader cryptocurrency market movements that saw Bitcoin and Ethereum also staging recovery attempts. The digital asset managed to surpass the $2.40 and $2.420 resistance levels, with bulls successfully pushing the price above the psychological $2.50 barrier. However, the recovery momentum stalled significantly near the $2.550 zone, where bears remained active and prevented further upside movement.

The technical picture deteriorated when XRP broke below a connecting bullish trend line with support at $2.320 on the hourly chart of the XRP/USD pair, according to data from Kraken. This breakdown occurred alongside the price dipping below the 50% Fibonacci retracement level of the upward move from the $2.190 swing low to the $2.5520 high. The cryptocurrency now trades below both the $2.420 level and the 100-hourly Simple Moving Average, indicating weakening bullish momentum and increasing selling pressure.

The immediate technical landscape presents clear battle lines for XRP traders and investors. On the resistance side, the $2.420 level now represents the first significant hurdle, followed by the major resistance at $2.50. A clear move above the $2.550 resistance could potentially send the price toward the $2.580 resistance zone, with any further gains possibly targeting the $2.650 and $2.720 levels. However, given current market conditions, these upside targets appear challenging to achieve.

Support levels have become increasingly critical as bearish pressure mounts. The initial support sits at the $2.320 level, which coincides with the 61.8% Fibonacci retracement level of the upward move from the $2.190 swing low to the $2.5520 high. Below this, the next major support emerges at $2.2750. A decisive break and close below the $2.2750 level could trigger further declines toward $2.220, with the next major support zone located at $2.20. A breach of the $2.20 support might open the door for a move toward $2.120, representing a significant retracement of recent gains.

Technical indicators across multiple timeframes are currently flashing warning signs for XRP holders. The hourly MACD for XRP/USD is now gaining pace in the bearish zone, suggesting increasing downward momentum. This development is particularly concerning for short-term traders as it indicates selling pressure may be intensifying rather than abating.

Complementing the bearish MACD reading, the hourly Relative Strength Index (RSI) for XRP/USD has fallen below the critical 50 level. An RSI reading below 50 typically indicates weakening momentum and suggests that bears are gaining control of the short-term price action. This combination of technical indicators creates a challenging environment for bulls attempting to regain control of the market narrative.

The current technical setup places XRP at a crossroads, with the cryptocurrency’s ability to hold above key support levels becoming paramount for preventing further declines. Market participants are closely monitoring whether XRP can muster enough buying pressure to clear the $2.450 resistance or if the breakdown below the bullish trend line will trigger the next leg lower in this correction phase.