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Although the recent surge in XRP has been impressive, there are indications that the asset may be about to decline. The accompanying chart highlights critical levels that might dictate XRP's next move, and regrettably, it looks like the probability of losing the $1 support is increasing.
XRP's jump to $1.10 was supported by a lot of momentum, but its inability to hold onto higher levels may be a sign that buyers are running out of steam. A crucial level of technical and psychological assistance is the $1 mark. The following important support zones are located around $0.75 and $0.69, and a breakdown below this point could increase selling pressure. These levels correspond to the 50-day moving average and earlier stages of consolidation.
The market might be overheated according to the Relative Strength Index (RSI), which is still in the overbought zone. Such circumstances have historically resulted in drastic corrections. Sellers taking back control could cause XRP's momentum to quickly reverse. A decline below $1 might lead to a wave of leveraged position liquidations, which would increase the downside even more.
Arman ShirinyanFurthermore, compared to the original spike, trading volumes have begun to decline, suggesting that there may not be enough buying interest to maintain current levels. The amount of $0.69, which corresponds to a confluence of moving averages, is the next important level to keep an eye on if XRP is unable to maintain $0.75. If this barrier is broken, there may be a significant retracement of recent gains, with a retest of the $0.58–$0.60 range possible.
Macro market conditions such as Bitcoin’s performance and broader crypto sentiment could heavily influence XRP’s trajectory. It is likely that altcoins like XRP will correct if Bitcoin does. Furthermore, early buyers and large holders' profit-taking may make selling pressure worse. Despite the remarkable rally of XRP, it is important to keep a close eye on the $1 support zone. A breakdown might cause a precipitous drop, eroding its most recent gains.
Tomiwabold Olajide
Godfrey Benjamin
Dan Burgin
U.Today Editorial Team
Vladislav Sopov