XRP Signals Next Move After Price Decline

What to Know:

• XRP is currently in a corrective phase, struggling to overcome resistance levels against both USD and BTC.
• Broader crypto market sentiment and Bitcoin’s performance are influencing XRP’s price action.
• The ability of XRP to hold key support levels is crucial for future liquidity and potential trend reversals.

XRP’s recent performance indicates a struggle to establish a sustained uptrend. The cryptocurrency faces significant resistance against both the US dollar and Bitcoin, leading to a corrective phase. Analysis of key moving averages and support levels is crucial for understanding potential future price movements.

XRP/USDT Analysis

The XRP/USDT pair has seen a rejection from the $2.40 resistance level, compounded by downward pressure from the 100-day and 200-day moving averages. This has pushed the price back towards the $1.80 support zone, a level that has historically provided significant horizontal support. The daily Relative Strength Index (RSI) has also declined from overbought conditions, falling below 50, suggesting a shift in momentum towards a more negative outlook.

Key Resistance and Support Levels

As long as XRP remains below the confluence of the 100-day moving average and the $2 supply region, the overall market structure suggests a continuation of lower highs within a downtrend. Failure to maintain the $1.80 support level could lead to a deeper retracement toward $1.50 or lower. Traders should monitor these levels closely for potential breakout or breakdown scenarios.

XRP/BTC Analysis

XRP’s performance against Bitcoin continues to show relative weakness. The XRP/BTC pair has faced rejection at the 2,400 sats resistance band, coinciding with the critical 200-day moving average, which acts as a dynamic overhead supply. This rejection has resulted in a sell-off, driving the price below the 100-day moving average around 2,200 sats and towards the lower end of its multi-month range near 2,000 sats.

Bitcoin’s Influence

The ability of the XRP/BTC pair to establish a higher low above the 2,000 sats support and reclaim key moving averages is crucial. Without this, relative strength is likely to favor Bitcoin, and any upward movements in the XRP/BTC pair may be viewed as corrective within a broader bearish trend. Bitcoin’s market movements and overall sentiment will likely continue to exert influence on XRP’s performance.

Broader Market Context

The performance of XRP must also be viewed within the broader context of the cryptocurrency market, including developments around Bitcoin ETFs and potential regulatory changes. These factors can influence investor sentiment and liquidity across the entire crypto space, impacting XRP along with other digital assets. Monitoring these broader trends is essential for a comprehensive understanding of XRP’s potential trajectory.

Conclusion

XRP is navigating a corrective phase, facing resistance against both USD and BTC. Key support and resistance levels will dictate near-term price action. The cryptocurrency’s ability to hold critical support and reclaim key moving averages is essential for any potential trend reversal. Broader market dynamics, including Bitcoin’s performance and regulatory developments, will continue to play a significant role in XRP’s future movements.

Related: XRP Message Signals New Listing

Source: Original article