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.
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.
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.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
