XRP Plunges Below Key Support: Is a Bearish Breakdown Imminent? XRP has entered a precarious trading period, suffering a fresh decline that has pushed its price below the critical $2.920 pivot zone. The cryptocurrency is currently grappling with consolidating recent losses, and a further downward trajectory could be on the horizon if it fails to defend a crucial support level.
Current Market Dynamics and Downward Pressure
The recent market movements saw XRP unable to sustain its position above the $3.020 mark, reflecting a broader bearish trend also observed in major cryptocurrencies like Bitcoin and Ethereum. This instability led to a significant dip below $3.00 and $2.950, squarely placing XRP in a short-term bearish zone. A pivotal moment in this decline was the breach of a key declining channel, which had offered support at $2.90 on the hourly chart. Trading beneath both $2.920 and its 100-hourly Simple Moving Average, XRP's bearish momentum appears to be strengthening. The price recently tested the $2.850 support level and is now consolidating below the 23.6% Fibonacci retracement of its downward swing from the $3.049 high to the $2.850 low.
Critical Levels to Watch: Resistance and Support
For XRP to stage a recovery, it must overcome immediate resistance levels, starting near $2.90. A more formidable barrier lies at $2.950, which aligns with the 50% Fibonacci retracement level of the recent decline. Subsequent major resistance points are identified at $3.00, $3.020, and $3.050. Conversely, if XRP cannot decisively clear the $3.00 resistance, the bearish trend could intensify. Key support levels for traders to monitor are $2.850, followed by the significant $2.80 mark. A sustained breakdown below $2.80 could precipitate further declines, potentially pushing the price towards $2.7250, and even as low as $2.650 and $2.60. Technical indicators reinforce this cautious outlook, with the Hourly MACD gaining bearish momentum and the Hourly Relative Strength Index (RSI) positioned below the 50 level.
