XRP, Selling Pressure Reignites Before Rebound..."Must Overcome $1.394 Resistance to Survive"

▲ XRP/ChatGPT generated image

XRP attempted a short-term rebound by recovering the $1.3620 range, but an analysis suggests that if it fails to overcome the $1.3940 resistance level, downward pressure could intensify again. The price has entered a short-term positive zone but remains below the 100-hour simple moving average, failing to confirm a strong trend reversal.

NewsBTC reported on May 21 (local time) that XRP began a recovery trend by surpassing $1.360 and $1.3620, and could aim for further gains if it breaks above $1.3940. On the XRP/USD hourly chart, a breakout above the upper trendline of a falling channel with $1.380 as resistance was confirmed.

However, selling pressure could become active again around $1.3820. This level coincides with the Fibonacci 23.6% retracement level of the downward move from the $1.5495 high to the $1.3465 low. Currently, XRP is trading below $1.3850 and the 100-hour simple moving average, meaning it must overcome the $1.3850 and $1.3940 resistances in sequence for the rebound to continue.

If XRP closes above $1.3940, it could attempt further gains towards $1.420. The next major resistance is presented at $1.4720. This price level overlaps with the Fibonacci 61.8% retracement level of the downward move from the $1.5495 high to the $1.3465 low. A clear breakout above $1.4720 would make the $1.50 resistance the next target, and further gains could open up to $1.520.

Conversely, if XRP fails to break through the $1.3940 resistance zone, a new decline could begin. The primary support level below is $1.3620, with the next major support at $1.3550.

If the price breaks below $1.3550 and a close is formed, the downtrend could extend to $1.3450, with the next major support zone presented at $1.3350. If even this zone is broken, XRP could be pushed further towards $1.320.

Technical indicators have left room for a short-term rebound. The XRP/USD hourly Moving Average Convergence Divergence (MACD) is accelerating in the bullish zone, and the hourly Relative Strength Index (RSI) is above the 50-mark. However, the rebound is limited until a key resistance level is broken, and whether $1.3940 is breached has been presented as a crucial variable for determining the short-term direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*