Ripple (XRP) is showing an obvious indication of a strong recovery since finding strong support at $2,080. The cryptocurrency has cleared a couple of technical barriers, signaling a return of bullish momentum. Investors and traders have been watching XRP very closely. If it’s able to clear important resistance levels, this could open the door for some serious upside. If we don’t succeed in jumping these points of resistance, we’ll find ourselves facing yet another price correction.

Technical Indicators Point to Bullish Momentum

Ripple (XRP) is well above the $2,150 support and the 100-hour simple moving average, showing positive signs in the short-term. XRP/USD of climbed above a major bearish trend line with resistance at $2,145 on the 4-hours chart. This break marks the beginning of a new low in market direction. XRP seems to have broken through the 23.6% Fibonacci retracement level with success. This range between a high of $2,258 to a low of $2,078 continuing to hold serves as further bullish confirmation. Hourly MACD – The hourly Moving Average Convergence Divergence (MACD) indicator for XRP/USD is showing a pretty strong momentum in the bullish zone. Combined, this increase further enhances the prospect for future upside price movement.

Immediate support on the downside is around the $2,132 area, which offers some buffer from possible profit-taking. The support level to watch is $2,120. We think this level can be something of a safety net when the price breaks lower. Should XRP experience a more substantial drop, the $2,050 zone is expected to provide a strong support base, preventing further downward movement.

Resistance Levels and Potential Breakout Scenarios

The short term hurdle for Ripple (XRP) is to break over the overhead supply around $2,180 price range. This level is an extremely important level of resistance and a strong break above could lead to additional upward momentum. If successful, XRP will retest the critical $2,168 resistance barrier. It will likely run into the 50% Fibonacci retracement level from its last drop (high of $2,258, low of $2,078). If the price manages to clearly cross the $2,180 resistance, the next target would be to test the $2,200 level.

An explicit close above the $2,200 resistance might open the doors for XRP bulls to push the asset forward to the $2,220 mark. XRP buyers have an important decision point at the $2,320 level. This determined resistance will challenge their fortitude to push for even more upward progress. For their part, investors should watch these levels to get a sense of how strong and long-term the present recovery is likely to be.

Potential Downside Risks

An upside break of the $2,180 resistance level could stimulate a new all-time high price rally. That situation would surely challenge those support levels and may even usher in an extended period of consolidation. Traders must keep their guard up and be proactive by making risk management their first line of defense against a losing trade.