XRP Signals Key Support Level

What to Know:

• XRP has declined to around $1.77, testing a critical support level that analysts are closely monitoring.
• The drop is part of a broader market pullback, with Bitcoin’s decline triggering liquidations across various altcoins.
• The ability of XRP to hold above $1.80 is crucial; failure to do so could lead to further declines toward $1.50, impacting short-term liquidity.

XRP is currently trading near a pivotal support level after experiencing a notable decline amid a widespread market correction. The digital asset has seen a sharp decrease in value, mirroring the performance of other major cryptocurrencies. Market participants are now keenly observing whether this critical level will hold or if it will give way to further downward pressure.

XRP Drops Toward Key Support

As of the latest update, XRP is trading around $1.77, reflecting a decrease of over 5% in the past 24 hours and more than 7% over the past week. The daily trading range has fluctuated between $1.73 and $1.87. This recent dip has brought XRP to its lowest valuation since early October, when it briefly fell below $1.60.

This price movement is closely correlated with a significant pullback observed in the broader cryptocurrency market. Bitcoin’s decline has been a key factor, precipitating liquidations across various altcoins, including XRP. Data from futures markets indicates that approximately $71 million in XRP long positions were liquidated, intensifying the selling pressure.

Analysts Warn of a Break Toward $1.50

According to technical analyst ChartNerd, XRP’s current price action could be forming a Wyckoff “Spring” pattern, which might lead to a short-term recovery if the support level is maintained. However, the analyst also cautioned that continued weakness below the $1.80 mark could validate a bearish setup.

Should the current support zone fail, the next key level that many traders are monitoring is $1.50. This level has not been tested since October and remains a significant point on various charts. The ability of XRP to hold above this level is crucial for preventing further declines.

Potential for Recovery

Conversely, analyst BitGuru pointed out that XRP is currently resting on a base following a prolonged slide. Historically, this area has attracted buyers, suggesting a potential for recovery. Holding this zone could pave the way for a rally toward previous resistance levels, offering an opportunity for traders to capitalize on upward momentum.

If the price begins to ascend, past consolidation zones between $2.20 and $2.50 are likely targets. Currently, the chart indicates that XRP is at a critical decision point, where its next move could dictate its short-term trajectory.

Ripple’s CTO Weighs In

In other news, Ripple’s former CTO, David Schwartz, addressed social media claims about XRP potentially reaching $50 or $100. While refraining from providing exact predictions, Schwartz emphasized the importance of using logic to evaluate such ambitious targets. He recounted his past doubts about XRP ever reaching $0.25, illustrating the inherent difficulty in making accurate predictions and cautioning against blindly following unsubstantiated claims.

Related: Crypto Regulation Advances in Senate Committee

Source: Original article