XRP Slumps After Losing Its Critical $2.40 Support

XRP/USD Long-term Trend: Ranging

The XRP price loses its critical $2.40 support which is above the 21-day SMA support and below the $3.00 high. XRP has failed to overcome the latest barrier and achieve its top price of $3.30. On December 18, the bears broke through the 21-day SMA support and fell quickly to a low of $2.00, while bulls purchased the dips. The cryptocurrency asset trades below the 21-day SMA resistance but above the 50-day SMA support.

The crypto asset’s upward movement remains uncertain, as it fell below the 21-day SMA support. On the upside, XRP will return to the positive trend zone if buyers maintain the price above the 21-day SMA and the $2.50 resistance level. However, XRP will fall after it is rejected at the resistance level. The crypto asset will fall to its existing support of $2.00. Later, it will drop to a low above the 50-day SMA. Currently, XRP is valued at $2.31.

Technical indicators

Key Resistance Levels: $2.50, $3.00, $3.50
Key Support Levels: $1.50, $1.00, $0.50 

Daily Chart Indicators Reading: 

The bears have broken through the critical 21-day SMA support, which is now a resistance level. The price bars are currently below the 21-day SMA resistance but above the 50-day SMA support. The implication is that XRP will be forced to move in a range limited by the moving average lines. The extended candlestick tail indicates significant buying pressure above the $2.00 barrier.

XRP/USD Medium-term Trend: Bullish

On the 4-hour chart, XRP has maintained a horizontal trend, fluctuating above the $2.00 support and below the $2.80 resistance level. The price bars lie below the moving average lines because the moving average lines reject higher moves. The slide will begin when the bears break below the $2.00 support.

4-hour Chart Indicators Reading

The 21-day and 50-day SMAs are sloping horizontally beside the price bars. The existence of Doji candlesticks has caused price movement to remain stationary. The 21-day SMA has pushed the cryptocurrency price lower today. The altcoin is moving modestly as the Doji candlestick resurfaces.

General Outlook for Ripple (XRP) 

On the daily chart, XRP loses its critical $2.40 support, indicating a fall. The altcoin trades between a limited range of $2.00 support and $2.50 resistance. Since December 19, the cryptocurrency price has fluctuated below the barrier level before resuming upward momentum. XRP will fall if it is rejected at its recent high.


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