XRP has faced difficulties in the cryptocurrency market recently, with its price falling as major currencies like Bitcoin and Ethereum rose. Let's delve into the key factors affecting XRP's dynamics.
XRP Price Decline
Currently priced at $2.37, XRP has dropped over 5% in the last seven days, with an additional 3.4% slump in the past 24 hours. This decline comes after a rally that began on March 19 due to news about Ripple's settlement with the SEC.
XRP/USDT Chart Analysis
Analyzing the XRP/USDT chart, two bearish patterns emerge: a head and shoulders formation and a descending triangle. These formations suggest potential downside risks for XRP, although they could be invalidated if XRP breaks above $3.
Potential Risks and Support Levels
If XRP fails to hold the $2 support level during its next retest, a 40% decline is possible, potentially dropping to $1.20. However, the $1.76 zone, aligning with the 200-day moving average, may offer some support to buyers.
Despite current challenges for XRP, the market remains uncertain. Technical analysis points to potential further declines, but for XRP to regain its position, it must break through key resistance levels and hold above current levels.
