XRP struggles to break key resistance and must defend a key Fibonacci support. What’s next?
XRP kicks off the new year with a modest 1.5% decline in the past 24 hours, now trading at $1.84. The price has been fluctuating within a narrow range of $1.81 to $1.88, showing some consolidation and lack of clear directional movement.Â
In the past week, XRP has shown a 1.7% decrease, but its 14-day performance is less bearish with a gain of 0.5%, signaling some resilience in the longer term. However, XRP’s short-term outlook still faces challenges, as it struggles to maintain upward momentum and break key resistance levels.
The immediate resistance for XRP sits at $1.88, where it has faced repeated rejections, indicating this level as a tough barrier for the bulls to overcome. With momentum indicators showing a slight negative shift, XRP needs to defend its support level to avoid a deeper pullback and maintain its stability for a potential breakout.
Can XRP Defend Support?
In the daily chart, the XRP price is currently hovering around $1.8398, with the asset facing strong resistance near the 0.236 Fibonacci level at $1.89. If XRP can manage to break above this level, the next resistance target is based at around $1.968, where the 0.382 Fibonacci retracement level rests.
On the downside, key support lies near the 0 Fibonacci retracement level at $1.77, which has previously provided a floor for price action. A failure to defend this support by bulls could lead XRP to test the next support level around $1.72.
Further, the Average True Range (ATR) indicator is currently at 0.0747, showing relatively low volatility compared to earlier periods. With the ATR trending downwards, a reversal could happen if XRP manages to break above the resistance at $1.89. Additionally, XRP needs to defend the support at the 0 Fibonacci level near $1.77 to prevent further downside.
Massive XRP Price Upsurge Coming
Elsewhere, analyst JD has highlighted the potential for XRP’s price to experience a significant surge after recently retesting the 21-month exponential moving average (EMA).
This pattern has historically preceded explosive rallies, such as in December 2017 and after the 2024 U.S. elections.Â
With XRP currently trading around $1.86, JD expects a similar move upward. XRP could reach as high as $16.5 if it mirrors past gains.
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