XRP finds itself at an inflection point, its price wavering near key thresholds. Technical indicators are flagging possible vulnerabilities, leaving traders on edge.
It’s a fragile moment for the cryptocurrency, where the slightest misstep could accelerate momentum to the downside.
XRP Faces Pressure, Hovering Near $2
On Monday, XRP slipped nearly 1%, settling at $2.1540 and directing market attention to its crucial $1.76 support zone. The technical backdrop isn’t promising. Its RSI has dropped to 39, signaling weakening momentum, while the MACD sits firmly in bearish territory, flashing red below the neutral line.
If current trends persist, XRP could face an 18% drop, testing its $1.76 safety net. However, the $2 range isn’t going down without a fight. The token managed a rebound to $2.08 over the weekend, suggesting this area remains a pivotal line of defense for long-term holders.
Ripple’s ongoing legal battle with the SEC continues to hover over XRP’s future. A newly raised question about the interpretation of the Howey Test has added complexity to the case, keeping regulatory uncertainty front and center.
On the macro level, Bitcoin’s extended consolidation phase is fostering a risk-averse tone in the market. This sentiment is mirrored by the $28 million in outflows from XRP investment products over the past week.
Can XRP Break Above $2.56?
Though bearish sentiment currently dominates, a handful of analysts suggest there’s potential for brighter days ahead. Using a mix of Elliott Wave Theory and Wyckoff reaccumulation analysis, some experts see signs of an impending bullish breakout.
Crypto analyst ‘Charting Prodigy’ shared via X that XRP might have concluded its corrective Wave 2 and could be setting up for an explosive sub-wave 3.
A break past $2.56 could ignite a decisive rally for XRP, with potential targets stretching from $2.9 to a bold $3.4, according to the latest analysis. Developing Wyckoff accumulation patterns, paired with a bullish divergence on the MACD, add weight to the optimistic outlook, signaling momentum that could redefine the coin’s trajectory.
What’s Next for XRP?
Key levels are in play for XRP, with $2 and $1.76 acting as critical supports that could make or break the current trajectory. A slide below these points risks opening the floodgates to deeper losses. Conversely, clearing $2.56 with conviction could spark a rally that alters the narrative entirely.
The tug-of-war between bearish pressure and potential recovery leaves the market on edge. All eyes are on these thresholds as XRP’s future hangs in the balance.
The post XRP’s Key Support Zones Tested as Bearish Pressure Mounts appeared first on International Business Times.
