XRP Price Navigates Treacherous Waters: Is a Deeper Fall Imminent?
XRP's price finds itself trapped in a precarious "danger zone," struggling to sustain a recovery above the critical $2.850 mark. Despite a brief surge, the cryptocurrency is now trading lower, with analysts warning of a potential significant decline if key support levels fail to hold.
XRP's Uphill Battle Against Key Resistance
Following a period of stability above the $2.70 level, XRP embarked on a recovery phase, mirroring movements seen in other major cryptocurrencies like Bitcoin and Ethereum. This push saw its value climb past the $2.75 and $2.80 resistance levels. However, the momentum appears to be faltering as XRP struggles to establish a foothold above the $2.850 zone. A recent bearish reaction pushed the price back below $2.820, with the asset currently trading beneath both the $2.820 level and the 100-hourly Simple Moving Average. A significant bearish trend line, forming resistance at $2.8180 on the hourly chart, further compounds the challenge for bulls aiming for upward movement. Should XRP manage to break and close above the $2.850 resistance, it could target $2.880, with further gains potentially pushing it towards $3.00 and even $3.050.
The Threat of Further Decline
The immediate concern for XRP holders is the potential for further losses if the cryptocurrency fails to overcome the $2.820 resistance. Initial downside support is identified near the $2.780 level, which also aligns with the 61.8% Fibonacci retracement of the recent upward move from $2.70 to $2.887. A breach of this support could see the price drop towards the next major support at $2.744. Should XRP fall and close below $2.744, a continued decline towards the $2.70 mark becomes increasingly likely. Technical indicators paint a cautionary picture, with the Hourly MACD for XRP/USD accelerating into the bearish zone and the Hourly Relative Strength Index (RSI) currently hovering below the 50 level, indicating weakening bullish sentiment. A definitive break below the $2.650 zone could unleash stronger bearish momentum, signaling a more significant market correction. Key Levels to Watch:
- Major Support Levels: $2.780, $2.70
- Major Resistance Levels: $2.850, $2.880 By Aayush Jindal
