Following XRP’s remarkable rise to $2.30, the asset has encountered a period of stabilization, with prices recalibrating back to $2.18 after briefly dipping below the crucial $2.25 threshold. While this temporary pullback might seem daunting for investors, it’s essential to note that it comes after a week of sustained growth, where XRP surged from $1.93 to $2.33, testing a formidable resistance level.
Crypto analyst MarketGuru shared insights on the current price action through a detailed chart, indicating that a hover around the $2.18 to $2.16 mark could be pivotal in determining whether XRP regains upward momentum towards $3 or faces a significant downturn.
Critical $2.16–$2.18 Range: A Pivotal Point for XRP
According to MarketGuru, who documented her technical breakdown on the platform X, XRP’s reversion around the $2.16–$2.18 region signifies a crucial decision point. After reaching resistance at $2.30, the failure to maintain support at $2.25 prompted a necessary retest of this significant range.
This price area highlights a prior consolidation zone, and sustaining momentum above it would imply that XRP is undergoing a typical ‘backfill’ phase following a breakout. Such patterns often see a cryptocurrency test key resistance, then move back to its initial breakout zone before continuing the upward trajectory.
According to the analyst’s perspective, maintaining this range is crucial to verify that XRP remains within breakout territory. The chart illustrated by MarketGuru showcases a rising wedge that intersects with horizontal support around $2.1688, notably near the 0.382 Fibonacci retracement level.
Conversely, failing to maintain this support could lead to a drastic shift in the market sentiment. If XRP drops below $2.16, it risks a decline towards $1.90, potentially undermining the bullish momentum established over the past week.
RSI Divergence Suggests a Potential Rebound
An encouraging indicator for XRP proponents is the behavior of the Relative Strength Index (RSI), which is showing signs of divergence from the current price trend. This divergence often indicates seller fatigue, further supporting the idea that the recent price movements could represent a necessary correction rather than a failing rally.
MarketGuru believes that if bulls can sustain the $2.16 to $2.18 range and reclaim the $2.25 mark, XRP could be aligned for its next upward phase. Potential price targets are set at $2.69 and $3.04, based on Fibonacci retracement levels. The initial resistance is positioned at $2.3027 around the 0.618 Fibonacci extension, marking a critical benchmark for confirming rally strength before further movement towards $3 or beyond.
Interestingly, XRP has shown signs of recovering bullish sentiment after bouncing off an intraday low of $2.17 within the last 12 hours. As of now, XRP is trading at $2.27, reflecting a 3.7% increase over the last 24 hours. This indicates buyer interest in flipping the $2.25 level into support.
