XRP: $1.30 Break Targets New Lows

What to Know:

• XRP is testing a key demand zone around $1.3 after a sustained downtrend.
• The broader crypto market is assessing Bitcoin ETF impacts amid macro uncertainty.
• A strong reaction from this level could signal short-term relief for XRP liquidity.

XRP is currently navigating a bearish phase, consistently failing to overcome resistance levels. The cryptocurrency is approaching a critical demand zone that could determine its next directional move. This analysis examines XRP’s price action through daily and 4-hour charts to identify potential support and resistance levels.

Daily Chart Analysis

XRP’s daily chart reveals a clear downtrend, with the price trading below former support levels that have now become resistance. The price is testing a demand zone around $1.3, an area that previously served as a base before an upward move. This zone is the first significant area where buyers might attempt to halt the decline.

The overall daily trend remains bearish. Corrective bounces in recent months have been capped by lower supply zones, which XRP has consistently respected before continuing its descent. As long as XRP stays below the channel’s mid-trendline at $1.6, any bounce from the current demand zone should be viewed as corrective rather than a sign of trend reversal.

Failure to hold this demand zone could lead to a deeper drop toward untested liquidity levels. Conversely, a strong reaction from this area could provide short-term relief, though it would not yet confirm a trend shift.

4-Hour Chart Insights

The 4-hour chart provides additional detail on the downtrend’s internal structure. Recent price action indicates strong rejection from successive supply zones, suggesting that sellers are actively defending these levels. The asset is nearing the $1.3 support, which aligns with the broader demand zone seen on the daily timeframe. This confluence increases the likelihood of a short-term reaction, as short sellers may take profits and buyers may step in.

However, multiple supply zones above the current price at $1.6 and $2 limit near-term upside potential. Any rebound toward these levels is likely to face renewed selling pressure, unless there is a clear break in structure and acceptance above the channel. Until such confirmation, the 4-hour trend remains bearish, with rallies likely pullbacks within a broader downtrend.

Broader Market Context

XRP’s price action occurs within a broader context of Bitcoin’s price discovery above $70,000 and the continued maturation of crypto market structure. The approval and launch of Bitcoin ETFs have brought significant institutional capital into the crypto space, impacting liquidity across various assets, including XRP.

Conclusion

XRP is at a critical juncture, testing a key demand zone that will likely influence its short-term trajectory. While the prevailing trend is bearish, a strong reaction from the $1.3 level could provide temporary relief. Traders and investors should monitor price action closely for signs of a potential trend shift, keeping in mind the broader market dynamics influenced by Bitcoin and the evolving regulatory landscape.

Related: XRP Negative Funding Signals Caution

Source: Original article