What to Know:
- XRP experienced a sharp decline, breaking below key support levels amid increased trading volume.
- Technical analysis indicates a bearish trend, with resistance at $2.37 and potential support around $2.08-$2.11.
- Traders should monitor the $2.17–$2.22 range as a critical inflection point for short-term directional movements.
XRP faced notable selling pressure, leading to a significant price drop during Tuesday’s trading session. The digital asset broke through crucial support levels, accompanied by a surge in trading volume, signaling increased bearish sentiment. Investors are closely watching whether XRP can maintain its position above the $2.00 psychological threshold.
The recent price action confirms a bearish bias, with XRP establishing a pattern of lower highs and lower lows from the $2.37 resistance peak. This pattern, combined with increased volume during sell-offs and decreased volume during rebounds, suggests institutional distribution. Momentum indicators have also turned negative, reinforcing the potential for further downside movement unless significant demand emerges.
Despite a brief recovery attempt, XRP struggled to sustain gains above prior support levels, indicating a shift from accumulation to distribution. The failure to reclaim the $2.17 line suggests continued weakness, with the $2.08-$2.11 range serving as a potential consolidation base. While an oversold recovery is possible, traders should remain cautious, as rallies may encounter heavy resistance until overall market sentiment improves.
Traders are advised to monitor the $2.08 support level closely, as a failure to hold above this point could trigger further losses toward the $2.00 mark. A sustained recovery above $2.22 would be necessary to re-establish a bullish outlook, while maintaining current levels is crucial to avoid another wave of liquidation. The $2.17–$2.22 zone represents a key inflection range that could determine short-term direction for XRP.
Source: Original article
