XRP is at a very interesting juncture at the moment, right now trading at $2.09. It is running into stiff resistance right under the 50-day simple moving average (SMA). The moving average was previous support during the 2024 price action. Now, it acts as an obstacle, keeping XRP from breaking above the $2.38 resistance level. Further upside for the cryptocurrency is approaching the 61.8% Fibonacci retracement level at $2.053. This zone is one of the most reactive market zones, often causing big price moves.
The market sentiment surrounding XRP at the moment is leaning more towards a neutral to bearish perspective on the weekly charts. In other news, Ripple Fear and Greed Index is currently 52. This reflects an extremely tenuous balance between investor fear and investor greed. Traders must remain vigilant and continuously monitor price action for bullish breakouts above .2100. A drop below $2.00 may be a clear sign of another major coffee trend shaking XRP’s price direction.
Technical Analysis and Key Levels
XRP’s recent price action further confirms that it has recently entered a consolidation phase. It has been oscillating in a very tight $2.00-$2.10 range for the last several days. This consolidation comes as XRP retests the 61.8% Fibonacci level, a key area that could set the course in either direction over the short term. Previously, the altcoin managed to surge above the 50% Fibonacci level of $1.64 in late 2024. That pivotal milestone range provided the groundwork for its ongoing test of the 61.8% mark for the moment.
Earlier this year, the 50-day SMA served as dynamic support for XRP. Currently, it has reversed to act as resistance, capping bullish XRP price action under $2.38. This move underscores the growing realities in the market that XRP continues to struggle in overcoming this growing technical hurdle.
Potential Breakout Scenarios
If XRP is able to push above the $3.177 level, it would allow the altcoin to spark a rally towards higher Fibonacci extensions. Potential targets are the 127.2% level at $3.974 and the 161.8% level at $5.022. If price manages to close decisively above $3.177, this might lead retest of the 78.6% level at $2.53. More importantly, it would clear a path toward a challenge of its long term high of $3.39.
Recently established chart patterns suggest a high probability that an explosive price move is brewing. Now, some bullish analysts are forecasting an incoming wave that could carry the price up to $5.2. This scenario is completely dependent on XRP breaking key resistance levels and sustaining bullish momentum.
Potential Breakdown Scenarios
If XRP cannot reclaim the 61.8% Fibonacci level at $2.0537, it is in danger of a correction. This pullback may bring it further down to the 50% Fibonacci level at $1.6465. This new Tier 3 is a key underpinning. If we don’t defend and preserve it, we might be faced with even greater losses in the future.
Traders will have to keep a keen eye on these key levels and watch for possible increased volatility as XRP goes through this important stage. As always, XRP’s price action over the next few days will remain contingent on its ability to breakout through resistance or maintain support. Keep an eye on these important thresholds!
