Ripple’s XRP is currently trying to bounce back above important resistance levels. The altcoin has gained more than 1% in the last 24 hours and is now trying to climb above the $2.30 mark. However, an analyst has warned that XRP is still in the midst of a bearish divergence, a pattern that has been developing for months.
Despite some short-term bounces and signals of oversold conditions offering minor support, there has been no indication of a major bullish rally for XRP.
Short-Term Support and Resistance Levels
Looking at XRP’s 8-hour chart, the price recently tested an area that was previously resistance, which is now acting as support in the range of $2.25 to $2.30. Although there was a slight dip below $2.25, reaching as low as $2.23-$2.24, the price is still attempting to hold this support level. If the price begins to reject this area and it flips back into resistance, it could see further downward movement. In that case, the next support zone lies between $1.95 and $2.05.
For the time being, XRP remains supported around $2.25 to $2.30. If there is another bounce in this range, resistance is expected just under $2.50, with stronger resistance between $2.65 and $2.80. However, it’s important to manage expectations and not anticipate a major breakout in either direction in the immediate future.
Sideways Price Action: A Period of Consolidation
Over the past month, XRP has been stuck within a sideways price range, bouncing between support and resistance without clear momentum. This type of price action often leads to a sense of stagnation, causing many traders to lose interest and exit the market. However, it is mostly during such periods of consolidation that the most valuable opportunities often arise. Historically, these quiet phases are followed by more big price movements.
