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The XRP price has retraced and lost the gains it recorded from its Sunday rally following Trump’s announcement that the crypto would be included in the crypto strategic reserve. Following this price correction, crypto analyst Trade City has key support levels that could determine XRP’s future trajectory.
Important Support Levels For The XRP Price
In a TradingView post, Trade City highlighted $3.06717 and $1.67220 as critical support levels for the XRP price on the weekly timeframe. While analyzing the weekly chart, the analyst noted that after bouncing along the ascending trendline, XRP confirmed its breakout above $0.73056, which sparked the main bullish leg, sending the crypto up to $3.06717.
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In line with this, Trade City remarked that $3.06717 is the all-time high (ATH) and a major supply zone. He added that the next bullish leg could begin soon enough if the XRP price can hold above this level. Meanwhile, in the event of a price correction, the analyst stated that the only key support viable in the weekly timeframe is $1.67220.
Trade City revealed that the Relative Strength Index (RSI) oscillator has exited the overbought zone and returned to normal levels. He asserted that the bullish scenario for the XRP price becomes more likely if the RSI re-enters overbought conditions.
Analysis Of The Daily Timeframe
Trade City went further to give an in-depth analysis of the XRP price on the daily timeframe. He stated that the first key observation on the daily timeframe for the XRP price is a strong bearish divergence on the RSI, which formed as the price moved sideways inside the range between $2.02967 and $3.30467.
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The crypto analyst revealed that the trigger for this bearish divergence is a break below $2.02967, which has yet to happen. The analyst warned that a break below this support level could happen soon due to a drop in the trading volume. If this range breaks downward and the support level at $2.02967 is lost, Trade City stated that the XRP price could enter a deeper correction toward key Fibonacci levels such as 0.382, 0.5, and 0.618.
The analyst noted that these three Fibonacci levels are strong support zones, which could prevent a further sell-off. Meanwhile, on the bullish side, if the XRP price breaks to the upside from its current range, the analyst assured that a new bullish leg will begin, pushing the crypto toward higher targets. The analyst’s accompanying chart showed that the XRP price could rally to as high as $4, marking a new ATH for the crypto.
At the time of writing, the XRP price is trading at around $2.32, down over 12% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com