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A recovery or a deeper decline in value could be determined by the market's next action as XRP has reached a critical price level. For weeks the digital asset has been trading in a descending channel, consistently marking lower highs and lower lows, which is a blatant sign of bearish pressure.
But the present support level, which is at about $2.00, is turning out to be a significant test for both bulls and bears. When considering XRP's past performance, support in this range has served as a springboard for recoveries in the past, with buyers stepping in to relieve selling pressure.
A reversal scenario might occur if XRP is able to maintain above $2.00, which might cause prices to move back toward resistance levels close to $2.29 and $2.60. But the downtrend structure is still there, and a clear break above the descending channel is required for a bullish shift to be confirmed.
Denys SerhiichukHowever, if XRP fell below this critical level, selling pressure might increase and a move toward $1.85 or lower might become possible. The likelihood of a breakdown is high given the state of the market, particularly if trading volume does not encourage a reversal attempt.
Vladislav SopovThe RSI and other technical indicators indicate that XRP is getting close to oversold territory, which may indicate a potential short-term rebound. But momentum is still lacking, and XRP might find it difficult to maintain gains unless there is a spike in buying interest. With the descending channel still influencing price action, XRP is at a critical juncture.
The asset may be in danger of further depreciation if bulls are unable to regain control quickly. The $2.00 level is one that traders should keep a close eye on because it will probably be set by XRP's next move.
Dan Burgin
Vladislav Sopov