XRP Analysis: Key Support and Resistance Levels to Watch

XRP analysis has reached a crucial moment as the cryptocurrency trades tightly between two major moving averages, showing signs of intensified sell pressure. Despite brief breakout attempts, XRP remains locked in a decisive range, leaving traders closely monitoring for a potential breakout or breakdown.

Testing Crucial Boundaries on the Daily Chart

Currently, XRP is fluctuating within a narrow trading band, bordered by the 100-day moving average at around $2.2 and the 200-day moving average near $2.3. This range has emerged as a high-pressure zone for the digital asset, with market participants paying close attention to its next move.

Recent market activity shows that XRP failed to break through the resistance offered by the 200-day moving average. This level continues to attract significant selling pressure, dampening upward momentum. The inability to reclaim this area has left XRP retreating toward the lower boundary, bringing the 100-day moving average back into focus.

If the price falters below the 100-day MA, the market could witness a more extended correction targeting the $2.0 area, which marks the most recent local low. This behavior indicates a bearish undertone and suggests that a further decline may occur unless support holds.

Additionally, XRP has remained stuck within a larger long-term descending wedge pattern. While this formation typically hints at a possible bullish reversal upon breakout, the current consolidation suggests that any immediate exit from this structure may be postponed, pointing to ongoing sideways movement in the near term.

XRP Faces Key Test on the 4-Hour Chart

Zooming into the 4-hour chart, XRP had briefly escaped a descending channel that had been guiding its short-term trend. This breakout sparked hope among traders for a shift in momentum. However, the move higher was quickly halted near the $2.3 resistance area. This zone aligns with a former swing high, reinforcing its role as a major barrier.

Following this rejection, XRP retreated to reassess the upper boundary of the former descending channel, which has now potentially flipped into a support line. If this area continues to provide a price floor, it sets the stage for a possible renewed push back toward the $2.3 resistance.

Failure to defend this support, on the other hand, would negate the breakout and raise the possibility of a bearish continuation. This makes the price action in the coming trading sessions critically important, as it will define the short-term trajectory of the asset.

Traders and investors are therefore eyeing these key technical levels — the 100-day MA support and the 200-day MA resistance — as pivotal checkpoints in XRP’s current setup. Their decision-making will hinge on how price behaves around these thresholds, making this a critical juncture for Ripple’s token.

Related: Expert Advice: Sell XRP If You’re Confused

More details and developments can be monitored through the original source: Watch These 2 Critical Levels for XRP: Ripple Price Analysis via CryptoPotato.