XRP’s recent price movements have been in line with the broader crypto market trends, particularly following Bitcoin’s lead. Currently, Bitcoin is showing more resilience compared to most altcoins, including XRP. This has resulted in a cooling-off period for XRP, with the price experiencing a slight pullback.
As of now, XRP is trading within a narrow range, with support at around $2.30 and resistance between $2.34 and $2.35. A breakout above $2.35, accompanied by a strong daily candle close, could propel the price towards the next resistance levels at $2.43 to $2.44. Further upside potential lies in the $2.55 to $2.62 range. On the downside, failing to hold above $2.30 may lead to a test of support levels at $2.10 to $2.15.
A potentially bullish signal is emerging on the 6-hour chart, as a bullish divergence is forming. Despite lower lows in price, the Relative Strength Index (RSI) is showing higher lows, hinting at a possible price bounce. However, confirmation would require sustained price stability and an upward trend alongside a rising RSI.
Despite the bullish divergence, XRP’s momentum is currently influenced by Bitcoin’s short-term movements. Any significant price action may depend on Bitcoin’s stability or upward momentum. Nonetheless, a deeper pullback for XRP does not necessarily spell bad news.
Looking ahead, if XRP retraces to around $2.00 and finds strong support, it could set the stage for a major bullish pattern on the daily chart – an inverse head and shoulders formation. This pattern typically signals a reversal to the upside. To validate this setup, XRP would need to retrace to $2.00, rally towards $2.60, and break above $2.62 with convincing daily candle closes. Until then, this remains a potential but unconfirmed scenario.
In conclusion, XRP’s price movements are closely tied to Bitcoin’s performance, and any significant developments in the market could impact its trajectory. Traders and investors should monitor key support and resistance levels for potential breakout opportunities in the near future.