XRP Price Broke Higher and Cleared the $2.150 Resistance Zone

The price of XRP broke higher and cleared the $2.150 resistance zone. It is now consolidating gains and might soon aim for another rally to $3.00.

In the last analysis, we discussed a major hurdle for XRP price near the $2.150 and $2.20 levels as the bulls faced heavy resistance.

However, the recent surge in Ethereum and Bitcoin sparked a bullish move which helped clear the $2.150 resistance to move into a positive zone. There was a clear move above a major bearish trend line, with resistance at $2.350 on the daily chart.

Moreover, the price surged above the 76.4% Fib retracement level of the downward move from the $2.5950 swing high to the $1.6155 low.

It settled above the $2.350 level and the 50-day simple moving average (blue). Finally, it tested the $2.60 resistance zone. Recently, there was a minor pullback below the $2.50 level.

If the price continues to move lower, it might soon test the same trend line which could act as strong support. But if the bulls remain active above the $2.150 level, then the price could start another increase.

Immediate resistance on the upside is at the $2.55 level. The first major resistance is at the $2.60 level. A candle close above the $2.60 level could open the door for another surge.

In the stated case, the price could rise toward the $2.8250 level. It coincides with the 1.236 Fib extension level of the downward move from the $2.5950 swing high to the $1.6155 low.

The next resistance is at the $3.00 level, above which the price could accelerate higher toward the $3.20 resistance and the 1.618 Fib extension level of the downward move from the $2.5950 swing high to the $1.6155 low.

Any further gains might open the door for a move toward the $4.00 handle.

If XRP price fails to stay above the $2.50 and shows sustained weakness, then it might continue to move down.

If the price drops lower, the first support on the downside is at the $2.40 level. The next major support is at the $2.350 level and the 50-day simple moving average (blue).

A daily candle close below the $2.20 level could spark another major decline. In that case, the bears might aim for a move toward the $2.00 support.