XRP Price Recovery Faces Key Resistance at $2.420

XRP price has initiated a recovery from the $2.320 support level, currently trading above $2.350 and the 100-hourly Simple Moving Average. The formation of a contracting triangle pattern with resistance at $2.420 on the hourly chart of the XRP/USD pair, using data from Kraken, suggests a potential breakout scenario that could determine the cryptocurrency’s near-term trajectory. This technical pattern emerges as XRP follows the broader market movement seen in Bitcoin and Ethereum, indicating coordinated action across major digital assets.

The bulls successfully pushed the price above the 23.6% Fibonacci retracement level of the downward move from the $2.5320 swing high to the $2.3275 low, demonstrating initial recovery momentum. However, the bears remain active near the $2.420 zone, creating a critical battleground that will likely dictate whether XRP can sustain its recovery or face renewed selling pressure. The current price action shows the cryptocurrency trading below both the $2.420 resistance and the 100-hourly Simple Moving Average, highlighting the significance of this technical level.

If XRP manages to clear the $2.420 resistance zone, the price could initiate a fresh upward move toward higher resistance levels. The first major resistance sits near the $2.480 level, which also coincides with the 50% Fibonacci retracement level of the downward move from the $2.5320 swing high to the $2.3275 low. A successful break above this level could see the price test the $2.550 resistance, potentially opening the path toward $2.580 and beyond.

Any sustained gains above the $2.550 resistance might propel XRP toward the $2.650 resistance level, with the next major hurdle for bulls potentially emerging near $2.720. This upward trajectory would represent a significant recovery from the recent lows and could signal renewed bullish momentum for the cryptocurrency. The technical setup suggests that clearing the $2.420 resistance is crucial for any sustained upward movement, as it would break the contracting triangle pattern that has been forming on the hourly chart.

Should XRP fail to clear the $2.420 resistance zone, the cryptocurrency could initiate a fresh decline toward lower support levels. Initial support on the downside is established near the $2.380 level, which previously acted as resistance during the recovery phase. A break below this level would signal weakening bullish momentum and potentially trigger further selling pressure.

The next major support sits at the $2.350 level, which aligns with the recent base formation and represents a critical psychological and technical level. If XRP experiences a downside break and closes below $2.350, the price might continue declining toward $2.320, testing the recent swing low. Further deterioration could see the cryptocurrency targeting the $2.250 support zone, with potential continuation toward $2.20 if selling pressure intensifies.

The hourly MACD for XRP/USD is now gaining pace in the bullish zone, suggesting building momentum for potential upward movement. This technical indicator provides some optimism for bulls looking for a breakout above the critical resistance levels. Meanwhile, the hourly RSI (Relative Strength Index) remains above the 50 level, indicating that buying pressure continues to outweigh selling pressure in the near term.

These mixed technical signals create an environment where traders must carefully monitor key levels for directional clues. The major support levels at $2.350 and $2.320 provide clear downside markers, while the resistance levels at $2.420 and $2.480 define the upside potential. The contracting triangle pattern formation adds another layer of technical significance, as breakouts from such patterns often lead to sustained moves in the direction of the breakout.