XRP price faces resistance at $2.48 as bulls attempt to maintain upward momentum
XRP price consolidates near $2.42–$2.43, with momentum indicators showing signs of exhaustion
XRP price is consolidating near $2.42–$2.43 on May 23 after facing resistance at the $2.47–$2.48 zone, which had previously capped its upside movement. The breakout above the descending trendline on the 4-hour chart earlier in May brought optimism, but the recent price action shows signs of short-term fatigue as the market struggles to push higher.
Highlights
- XRP price is consolidating near $2.42–$2.43, struggling with resistance near $2.47–$2.48.
- Short-term momentum indicators, including RSI and MACD, signal waning bullish strength.
- A failure to hold above $2.39 could lead to a pullback toward $2.31–$2.20 support.
The price action shows significant pressure after the rally to $2.48, with a rejection leading to consolidation around $2.41. This pause suggests a potential short-term cooling phase, as momentum indicators reflect weakening bullish sentiment.
XRPUSD price dynamics (Source: TradingView)
Breakout structure and short-term rejection
XRP had successfully broken above its mid-May descending trendline, rallying sharply to touch $2.48. However, the price faced immediate rejection at that level, forming a long upper wick and retreating to the middle of the Bollinger Bands around $2.39. This indicates that upside momentum has stalled, and the market is currently consolidating just above the trendline support at $2.40.
A clean break above $2.48 would be required for further upside towards the next resistance zone near $2.63–$2.70, but the current pause suggests a potential short-term cooling phase.
Momentum indicators signal caution
The RSI on the 30-minute chart has dropped to 44, reflecting waning bullish momentum after recent highs. Additionally, the MACD has shown a bearish crossover, signaling a potential short-term pullback or consolidation before the next move.
Despite the broader bullish trend, these technical signals point to a possible cooling-off period for XRP, and traders should be cautious of a potential retest of lower support levels if the price fails to maintain strength above $2.39.
Outlook for XRP price
The outlook for XRP remains mixed in the short term. A successful defense of the $2.39–$2.40 trendline support zone is crucial for maintaining the broader bullish structure. If buyers can reclaim the $2.47–$2.48 resistance zone with volume, the price could target $2.63–$2.70. However, failure to hold above $2.39 could lead to a deeper retracement toward the $2.31–$2.20 support zone, where the demand for XRP may resurface.
As discussed in earlier reports, XRP continues to face challenges at key resistance levels, particularly around the $2.47–$2.48 zone. Momentum indicators suggest that a short-term pullback is possible, but the medium-term outlook remains positive as long as key support zones hold.
