XRP Price Strong Comeback Faces A Key Test: Breakout or Rejection?

XRP nosedived toward $1.80 before the bulls appeared. The price trimmed most losses, gained over 25%, and now faces a key challenge.

XRP Price Recovery Faces Key Challenge

In the past few days, XRP saw a few nasty moves. After the bulls failed to clear the $3.20 resistance zone, there was a sharp decline. The recent trade war by Trump sparked heavy bearish moves in Bitcoin, Ethereum, XRP, and other cryptocurrencies.

XRP saw a major decline of over 30% from the $3.20 resistance. The bears pushed the price below the $2.50 support and the 50-day simple moving average (blue). The decline was such that the price even spiked below the $2.0 support. Finally, the bulls appeared near the $1.80 zone.

XRP price is now recovering losses from the $1.780 low. There was a strong increase above the $2.00 and $2.50 levels. The price gained over 25% and was able to surpass the 50% Fib retracement level of the downward move from the $3.40 swing high to the $1.780 low.

The bulls were able to reclaim the 50-day simple moving average (blue). The price is now trading above the $2.60 level, but faces a couple of key challenges.

The current price action is positive, but the bulls seem to be facing a couple of major hurdles near the $2.75 and $2.780 levels. The 61.8% Fib retracement level of the downward move from the $3.40 swing high to the $1.780 low is also near $2.780.

The main resistance is now forming near the $3.00 zone. There is also a key bearish trend line forming with resistance at $3.00 on the daily chart.

A close above the $3.00 resistance and the triangle could set the pace for a larger increase. The price could rally and test the $3.20 resistance in the stated case. The next major resistance is near the $3.40 level.

A convincing move and close above the $3.40 resistance zone could send the price toward the $3.80 level. Any more gains might open the doors for a new all-time high or even $4.00.

Recently, Ripple shared the report of the final quarter of 2024, highlighting a 280% surge in value in Q4, the increase in demand, and global adoption and building utility.

Another Decline?

Conversely, XRP price might struggle to surge above the $2.780 resistance and start another decline. Immediate support is near the $2.60 level and the 50-day simple moving average (blue). The first major support sits near the $2.4850 level.

A daily close below the 50-day simple moving average (blue) and the $2.4850 could spark another major decline. In the stated case, the bears might aim for a move toward the $2.20 support. The next target for the bears could be $2.00. Any more losses might send the price toward the $1.80 support.

Overall, XRP price is trading in a bullish zone above the $2.4850 support. However, the bulls need to gain strength for a move above $2.78 and then $3.00. If not, the price could restart its decline.

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