XRP is showing signs of renewed weakness as the price struggles to hold above $2.85, signaling a potential continuation of the short-term downtrend. Analysts note that XRP’s price action mirrors broader market weakness seen in Bitcoin and Ethereum, suggesting that the current decline could extend further if key support levels fail.
XRP Fails to Hold Key Levels
After failing to maintain momentum above $2.950, XRP entered a bearish phase, declining below $2.920 and subsequently breaking the $2.90 support. This downward movement placed XRP in a short-term bearish zone, testing the $2.770 swing low.
Currently, the price is consolidating near $2.780, slightly below the 100-hourly Simple Moving Average, while a bearish trend line forms with resistance at $2.8350 on the hourly chart. Traders are closely watching this level, as a rejection here could reinforce bearish pressure in the near term.
Resistance Levels to Watch
For any potential recovery, XRP must overcome several key resistance zones. The first resistance sits near $2.8350, followed by $2.880, which aligns with the 23.6% Fibonacci retracement level of the downward move from $3.05 to $2.770. A decisive break above $2.880 could target $2.950, corresponding to the 61.8% Fibonacci retracement, before attempting a test of the psychological $3.00 mark.
Beyond $3.00, bulls would face the next hurdle around $3.050, which, if surpassed, may signal a potential reversal of the current downtrend. However, until these resistance levels are convincingly cleared, XRP remains at risk of further losses.
Downside Risks and Key Support
On the downside, XRP faces immediate support at $2.780, which aligns with the short-term consolidation zone. A break below this level would expose the next support near $2.750, followed by $2.720 and $2.650.
If XRP closes below $2.650, the selling pressure could intensify, potentially driving the price toward $2.60. Analysts warn that sustained weakness in the broader crypto market could accelerate this decline, making it critical for XRP bulls to defend these support levels to avoid a deeper correction.
Technical Indicators Highlight Bearish Momentum
Technical charts show that XRP is currently trading below the 100-hourly SMA, suggesting short-term bearish momentum. The presence of a descending trend line and repeated rejections near $2.8350 confirm that sellers remain in control.
Additionally, the 23.6% Fibonacci retracement level at $2.850 has acted as a resistance zone, further limiting recovery attempts. Traders are watching for either a decisive break above $2.880 or a break below $2.750 to confirm the next major market direction.
Market Outlook
XRP’s near-term outlook is cautious, with the potential for additional downside if bearish pressure continues. Investors and traders are advised to monitor key support and resistance levels closely, with $2.780–$2.750 serving as the critical zone for stability.
Any significant rebound would require clearing the $2.880–$2.950 resistance corridor, which could shift market sentiment toward a more bullish phase. Until then, market participants should anticipate range-bound or declining price action, with volatility expected around the highlighted levels.
Conclusion
XRP is under pressure as it fails to maintain the $2.85 zone, highlighting the risk of another sell-off. Key resistance levels at $2.8350, $2.880, and $2.950** must be breached for a bullish recovery, while support zones at $2.780, $2.750, and $2.650 will determine the depth of further declines.
Traders should approach XRP cautiously in the near term, keeping a close eye on the support and resistance levels to gauge potential reversals or continuation of the downtrend. With the broader crypto market still exhibiting volatility, XRP’s price trajectory could remain under pressure until it establishes a clear direction.
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