Ripple’s XRP is currently experiencing a slight decline of more than two percent, trading below the crucial $2.40 level. In order for XRP to maintain its positive momentum, it must remain above the current support levels, particularly at $2.29. It is important to note that XRP, much like other major altcoins, often follows the price movements of Bitcoin. If Bitcoin sees a temporary increase, we may witness similar movements in altcoins such as XRP.
Potential Pullback or Minor Slowdown on the Horizon?
While the bearish divergence could indicate a possible pullback, it does not always result in a significant drop. Sometimes, it leads to a minor slowdown, such as the current resistance seen around the $2.50 mark. With XRP approaching a critical resistance point and displaying this cautionary signal, it may not be the ideal time to initiate new long positions. In fact, it might be prudent to consider taking profits from existing positions at this time.
Support and Resistance Levels
The price is currently facing resistance levels at $2.70 and $2.63, with additional resistance seen at pivot points of $2.58 and $2.53. Some hindrance is observed in the 3-10 day moving average crossover and raw stochastic levels at 80% and 70%, respectively.
Having crossed the 18-day moving average at $2.41, the price is now encountering the 38.2% retracement from the 4-week high. Further support can be found at $2.40 (first support point) and $2.35 (second support point), with a 50% retracement from the 4-week high/low at $2.31. The 9-day moving average has also paused at $2.33.
Additional support levels are evident at $2.27 and $2.19, where the price intersects with the 9-day moving average. Deeper support can be found at $2.20 and $2.11, with raw stochastic levels indicating oversold conditions at 20%.
In conclusion, while XRP is currently facing some resistance levels and a potential pullback, it is essential to closely monitor the price action and key support levels to gauge future movements in the cryptocurrency market. Stay informed and make informed decisions to navigate the volatile crypto landscape effectively.