XRP is currently facing significant short-term bearish pressure, despite its long-term weekly chart maintaining a bullish structure. Recent technical analysis indicates a likely continuation of downward price movement, as key support levels have been breached, shifting market sentiment decisively to the sellers' advantage.
XRP's Immediate Price Outlook
The immediate outlook for XRP is overwhelmingly bearish, with the cryptocurrency trading around the $2.42 mark at the time of analysis. A critical demand zone between $2.7 and $2.8, which had served as robust support since July, has now been broken. This breakdown signals a weakening of buyer defense and has left behind a substantial price imbalance, stretching from $2.5 to $2.77, which is expected to act as a strong resistance area for any potential recovery. Technical indicators like Moving Averages and the Awesome Oscillator also align with this bearish sentiment.
Key Support Levels and Potential Downside
Given the prevailing bearish internal structure, XRP is anticipated to experience a further price drop, potentially by as much as 22%. This could push its value towards key support levels at $1.9 and $1.6. A daily close below $2.28 would significantly increase the probability of this expected decline. Furthermore, a cluster of short liquidation levels around $2.67 could magnetically draw the price higher in the short term, but any bounce into this region is likely to be met with renewed selling pressure, reinforcing the downward trend towards the psychological $2 support.
Influencing Factors and Long-Term Perspective
While the daily chart paints a bearish picture, the weekly timeframe for XRP maintains a bullish swing structure, stemming from a rally that began in April. This long-term bullish outlook would only be invalidated by a decisive move below $1.6. Although the Chaikin Money Flow (CMF) has shown a slight increase in buying pressure (to +0.05), it is unlikely to be sufficient to overcome the current bearish momentum and push prices sustainably past $2.8. Beyond internal factors, the broader cryptocurrency market, particularly Bitcoin, could also impact XRP's trajectory; a strong Bitcoin rally beyond $117k might be the catalyst needed for XRP to attempt a recovery above $3.1.
