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After four days of losses, XRP has retreated to a crucial resistance-turned-support level at $2.17. Even though the downward trend has persisted, there are indications that it might be abating, indicating that a big change in the mood of the market may be imminent. XRP is not in a bad place overall, even with the recent drop.
Over the past several months, the asset has maintained a robust upward trend, and the current retracement seems to be a normal correction rather than a total collapse. With the price action now at a significant resistance level, traders are keeping a close eye on XRP to see what it will do next. The three most likely scenarios are listed below. A bounce from the $2.17 support level, which would start a recovery rally, is one possible scenario.
XRP may return to $2.60-$2.73 range where the 50 EMA is currently located if this scenario materializes. In addition to confirming strength, a successful retaking of this level could pave the way for a subsequent attempt to break above $3.00 in the upcoming weeks. If buyers enter the market but do not move quickly, XRP might stall in its current range. Future movement may begin with a sideways consolidation period between $2.17 and $2.40.
Valeria BlokhinaThe market would be able to level off and accumulate sufficient volume for a possible breakout in either direction as a result. In the worst-case scenario, XRP would completely lose the $2.17 level, which could push it down to the historically high support level of $1.63. Although it is not the best option for bulls, this would probably be the last line of defense before buyers intervene forcefully to stop a more severe decline.
Despite the fact that XRP has been struggling lately, the downtrend is slowing, which may be a good thing. Upcoming trading sessions are critical because the current resistance test will influence whether XRP recovers, consolidates or heads lower.
Gamza Khanzadaev
Alex Dovbnya
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