The cryptocurrency market has seen a notable downturn for XRP, with the digital asset extending its losses and trading significantly below the $1.95 mark. A prevailing bearish sentiment indicates that XRP could face further declines if it struggles to regain momentum above the critical $2.00 threshold.
XRP's Recent Price Action
XRP initiated a fresh decline after failing to hold above the $2.050 level, mirroring the broader market's bearish trend, including Bitcoin and Ethereum. The price slipped below crucial support levels at $2.00 and $1.950, firmly entering a short-term bearish zone. It even experienced a sharp spike below $1.880, bottoming out at $1.8681 before attempting a minor recovery above $1.90. This rebound, however, stalled near the 23.6% Fibonacci retracement level of its recent decline, with bears quickly reasserting control. Currently, XRP is trading below $1.920 and its 100-hourly Simple Moving Average, further solidifying the downtrend.
Critical Levels and Future Outlook
For XRP to reverse its fortunes, it must overcome significant resistance. The immediate hurdle lies around the $1.950 level, which also aligns with the 50% Fibonacci retracement of the recent downward swing and a key bearish trend line on the hourly chart. A decisive close above $2.00 could pave the way for a move towards $2.050, with subsequent resistance points at $2.10, $2.120, and potentially $2.150, eyeing the $2.20 mark. Conversely, failure to break past the $1.95 resistance could trigger more losses. Initial support on the downside is located near $1.880, followed by the major support level at $1.850. A sustained break and close below $1.850 would be a bearish signal, potentially pushing the price further down to $1.820, then the $1.80 zone, and even lower towards $1.7650. Technical indicators, such as the Hourly MACD gaining pace in the bearish zone and the Hourly RSI remaining below the 50 level, underscore the current bearish dominance.
