- XRP is in a WXY correction phase, signaling a potential upward trend.
- Support at $2.00 and resistance near $2.50 could dictate future price moves.
- MACD indicates short-term bullish momentum, but a slight bearish divergence exists.
The XRP market is currently undergoing a correction after a prolonged downtrend. After a bearish phase, XRP is showing signs of recovery, with key support and resistance levels coming into focus. Technical analysis suggests that this correction may be a larger WXY structure, leading to potential future gains.
Key Support and Resistance Levels for XRP
In a video that was produced by the XForceGlobal channel, it has been illustrated that there are signs that the technical outlook in XRP is forming a WXY correction. The analyst comments on this structure by stating that it creates confusion among the traders as it could be perceived that it is an indication that the market is set to decrease its losses further.
But even in this case, they are in the process of correction compared to several days of declines and are not a reversal pattern. The market has been to try and stay above the key 38.2% Fibonacci retracement level. In most circumstances, such a level acts only as a minimum level of support in a corrective wave, which makes this level of utmost importance.
Resistance levels are also vital in this analysis. Currently, XRP is facing resistance near the $2.50 level, which has been tested multiple times. A breakout above this level could open the door to further gains, potentially reaching the $3.00 to $4.00 range. These levels are significant, as they represent the upper bounds of the current market cycle.
What is the Current XRP Market Performance?
According to a TradingView chart at the time of writing, The RSI, currently at 50.24, indicates that XRP is neither in overbought nor oversold territory. This brings a kind of neutrality that portrays the market in a balanced manner.
A crossing above the 70 levels may mean overbought, and the price might have to correct downwards while crossing below 30 may imply oversold and may need to reverse upwards. Currently, the RSI indicates that the price of XRP is likely in a range-bound movement, specifically the consolidation phase, so upward movement may be anticipated if XRP breaks through these particular levels.
However, MACD is at 0.0228, and the signal line is at -0.0629. This means that at the current time, the MACD line is above the signal line, which is technically bullish. MACD is rising, indicating that the bulls may take control in the short term. However, there is a slight bearish divergence when the price moves above $2.00. The momentum shift may prompt a downward move or consolidation in the price range.
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