Ripple's XRP is experiencing a significant drop of over 18%, trading at $2.30, following a brief rally in the market. The broader sentiment turned negative after Bitcoin reached $95k.
Current Market Situation
According to analyst Josh from Crypto World, XRP is following the trends of Bitcoin and the broader stock market. After a short-term price pump, XRP recently experienced a pullback, particularly after breaking above the resistance zone between $2.65 and $2.80. However, the price is now back below this level.
Key Support and Resistance Levels
The next important support zone for XRP lies between $2.25 and $2.30. If the price bounces here, there could be a short-term recovery. However, if it breaks below $2.25, a further drop towards $2 or even the $1.95-$2.05 range is likely. This zone will be critical for XRP in the near future.
Bitcoin Influence and Short-Term Indicators
If Bitcoin continues its sideways movement or further declines, XRP may mirror these actions. It's likely that XRP will experience some consolidation in the short term before making a bigger move. Recently, XRP showed an oversold signal, which led to a short-term bounce. Now, the RSI is indicating overbought conditions, suggesting a pullback could be on the horizon. Historically, XRP has shown price pullbacks after such overbought signals, and this time may be no different. However, the RSI is now resetting to more neutral levels, which may indicate a pause in the current bearish price action.
In the near future, XRP remains under pressure, reflecting overall trends in the cryptocurrency market. Attention should be paid to critical support levels and the influence of further Bitcoin movements.
