XRP Drops 5% Below $2.40 Resistance Zone

XRP price has initiated a fresh decline, falling below the $2.420 resistance zone. The cryptocurrency is currently exhibiting bearish signs, with the potential for further declines below the $2.30 level. The price is now trading below $2.40 and the 100-hourly Simple Moving Average, indicating a bearish trend. A connecting bearish trend line is forming with resistance at $2.35 on the hourly chart of the XRP/USD pair, suggesting that the pair might extend losses if it breaks the $2.30 support zone.

XRP price failed to sustain its upward momentum above the $2.420 resistance zone and reacted to the downside, similar to Bitcoin and Ethereum. The price declined below the $2.40 and $2.35 levels, testing the $2.30 zone. A low was formed at $2.301, and the price is now consolidating losses. The current price action is bearish below the 23.6% Fib retracement level of the recent decline from the $2.478 swing high to the $2.301 low.

The price is now trading below $2.38 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.35 level. The first major resistance is near the $2.3850 level or the 50% Fib retracement level of the recent decline from the $2.478 swing high to the $2.301 low. The next resistance is $2.420. A clear move above the $2.420 resistance might send the price toward the $2.450 resistance. Any more gains might send the price toward the $2.50 resistance or even $2.550 in the near term. The next major hurdle for the bulls might be $2.620.

If XRP fails to clear the $2.40 resistance zone, it could start another decline. Initial support on the downside is near the $2.30 level. The next major support is near the $2.20 level. If there is a downside break and a close below the $2.20 level, the price might continue to decline toward the $2.120 support. The next major support sits near the $2.050 zone.

Technical indicators suggest a bearish trend for XRP. The MACD for XRP/USD is now gaining pace in the bearish zone, and the RSI for XRP/USD is now below the 50 level. Major support levels are at $2.30 and $2.20, while major resistance levels are at $2.40 and $2.420.