XRP Price Sinks Deeper, Faces Crucial Test Amidst Broader Crypto Downturn
XRP is currently grappling with a significant price correction, struggling to reclaim the crucial $3.00 resistance zone. The cryptocurrency is experiencing further declines, prompting concerns among investors about a potential broader crash if current support levels fail to hold.
XRP's Precarious Position Below Key Support
Following a broader market decline that saw Bitcoin and Ethereum also dip, XRP initiated a fresh downward trend, falling below the $3.00 mark. It breached significant levels at $2.950 and $2.920, firmly entering a bearish territory. The selling pressure pushed XRP below $2.850 and its 100-hourly Simple Moving Average, eventually testing the $2.74 level with a low recorded at $2.738. Currently, the asset is consolidating these losses, trading beneath the 23.6% Fib retracement level derived from its recent downward swing. A notable bearish trend line is also forming on the hourly chart, signaling resistance at $2.80.
Critical Levels and Future Outlook
For XRP to stage any recovery, it must first protect the immediate support at $2.720. Should bulls succeed, the price could attempt to challenge the initial resistance near $2.80. A decisive move above the $2.820 resistance level could pave the way for a push towards $2.850. Further upward momentum might see XRP testing the $2.90 resistance or the 50% Fib retracement level of the recent downturn, with the ultimate major hurdle for bulls standing near the $3.00 mark. However, the outlook remains challenging. If XRP fails to breach the $2.820 resistance, it risks extending its losses. Key downside support levels are identified at $2.720 and a more substantial $2.650. A break and close below the $2.650 level could see the price plummet further towards $2.60, and potentially as low as $2.50, which would significantly strengthen bearish momentum. Technical indicators reinforce this cautious sentiment, with the Hourly MACD showing increasing bearish momentum and the Hourly RSI positioned below the 50 level.
