The price of XRP is once again nearing the critical $2 level, having dropped over 5% recently, prompting analysts to foresee further declines.
XRP Price Drop and Its Causes
XRP's price has recently fallen more than 5%, bringing it close to $2.06. The main reason for this drop is the inability to maintain momentum above key moving averages.
Technical Indicators and Support Levels
Technical indicators suggest that the long-term $2 support level is at risk. The 200 EMA, currently at $1.94, serves as the final line of defense for XRP after breaking below the 50 and 100 EMAs. There has also been a decrease in buying volume, further increasing selling pressure.
Possible Scenarios for XRP's Future Movement
The current technical conditions and the descending triangle pattern that has been developing since January suggest a possible further decline below $2. This scenario could accelerate the drop due to the unwinding of long positions and increasing market panic. Recovery to the $2.30-$2.40 range with significant trading volumes is necessary for the trend to change, which currently seems unlikely without an external catalyst.
The XRP market is under significant pressure, and the coming days may be crucial for the coin's price. Investors should be prepared for potential changes.
