XRP has recently entered a corrective phase after a strong rebound from the $1.80–$1.85 accumulation zone. This area, marked by multiple Fibonacci retracement levels, served as a magnet for buyers, resulting in a sharp vertical move rather than a gradual climb.
Analyst Tara pointed out the importance of the 0.236 retracement level at $2.27 and how it has remained a strong support level in the short-term correction. Currently, the market expects another test at the $2.30-$2.35 area, which may resist any further advance. If the level cannot be breached, the altcoin may decline towards the 0.382 level at $2.18.
On the 4-hour chart, there is additional support seen from the moving averages around current levels. Momentum remains positive, so a correction is expected to be seen as a retest instead. A close below $2.00 will make XRP decline further towards $1.90, where a cluster of support levels is seen.
Momentum Gains on 4-Hour and Daily Charts
Clearly, the price is above the $1.90 to $2.00 levels, so there is a shift from a bearish to a bullish market in the short term. The RSI on the 4-hour chart is in the upper 60s to lower 70s, reflecting strong buying but also a possible pause in the market action in the short term. The price is above $2.18 to $2.20, which was a resistance level, and is set to reach $2.30.
Looking at the daily chart, it can be seen that the market has remained under constant corrective pressures to make lower highs and lows since late summer. However, recently, the appearance of bullish candles indicates that buyers have begun to withdraw their support at the $1.90-2.00 zone, thereby converting it into a short-term support zone. The MACD is moving to the positive zone, while the Range Oscillator is indicating increased bullish power.
XRP Key Decision Zone: $2.30–$2.35
The zone around $2.30-$2.35 is an important area to watch for XRP. A closing breakthrough above that zone on a clean 4-hour chart could target the Fibonacci extension levels of $2.40, $2.48, and then the zone of $2.58-$2.65. These zones represent the 0.618 extension of the previous move and thus have high potential if the short-term consolidation is successful.
Also Read: XRP Approaches Make-or-Break Trend Ribbon, Long-Term Targets $5–$8
