XRP Tests Support: Signals Key Price Levels

What to Know:

• XRP faces persistent bearish pressure against both USDT and BTC, marked by lower highs and lower lows.
• The broader crypto market is navigating mixed signals, with Bitcoin’s price movements influencing altcoin performance.
• Continued downward pressure on XRP could impact liquidity and investor sentiment, particularly if key support levels are breached.

XRP is currently navigating a challenging market environment, exhibiting sustained bearish momentum against both its USDT and BTC trading pairs. The price structure reveals a pattern of lower highs and lower lows, signaling that sellers are maintaining control. Despite occasional bounces from support levels, the overall trend suggests further downside risk as XRP remains below critical moving averages and within a defined descending structure.

XRP/USDT Technical Analysis

On the XRP/USDT chart, the price action is contained within a well-defined descending channel. The price consistently faces rejection at the channel’s midline, the upper trendline, and key moving averages such as the 100-day and 200-day MAs. A recent bounce from the $1.20 demand zone failed to breach the $1.80 supply area, reinforcing the existing bearish structure. This indicates that any rallies are likely corrective in nature rather than the start of a sustained uptrend.

The Relative Strength Index (RSI) remains below the neutral 50 level, reflecting a lack of significant bullish momentum. As long as XRP remains below the mid-channel resistance and the 100-day and 200-day moving averages, currently positioned near $1.90 and $2.30 respectively, the risk of further downside towards the lower channel boundary remains substantial, with the $1.20 level serving as a crucial support.

XRP/BTC Pair Analysis

Against Bitcoin, XRP demonstrates relative weakness, trading below both the 100-day and 200-day moving averages. These moving averages are located above the 2,200 satoshi level. The inability to sustain prior breakout gains and the rejection from the 2,200-2,400 satoshi resistance zone confirm that sellers are actively defending higher levels. The price is currently compressing near a key horizontal support band at 2,000 satoshis.

Momentum and Key Levels

Momentum on the XRP/BTC pair is currently neutral to bearish. The RSI is struggling to maintain strength above the 50 level. A breakdown below the current support region could lead to further underperformance relative to Bitcoin. Conversely, reclaiming the cluster of moving averages would signal a potential shift in momentum, indicating that XRP is beginning to regain strength against BTC.

Broader Market Implications

XRP’s struggle to maintain its value against both USDT and BTC reflects broader market uncertainties and the impact of Bitcoin’s price movements on altcoin valuations. Investors are closely watching key support and resistance levels to gauge potential shifts in market sentiment. The performance of XRP is also influenced by developments in its ongoing legal battle with the SEC, which continues to be a significant factor affecting investor confidence and market liquidity.

Conclusion

In summary, XRP is facing significant bearish pressure, trading within a descending channel against USDT and showing relative weakness against BTC. Traders and investors should closely monitor key support and resistance levels, as well as broader market trends, to assess potential trading opportunities and manage risk effectively. The ability of XRP to reclaim key moving averages will be crucial in determining its short- to medium-term trajectory.

Related: XRP Forecasts Target Bitcoin Surpass

Source: Original article