XRP has underperformed over the past week, surprising many amid the strong rally in other cryptocurrencies like Bitcoin and Ethereum. This article examines XRP's recent price fluctuations and current market standing.
XRP Price Decline
Currently priced at $2.37, XRP has dropped over 5% in the last seven days, contrary to the ongoing rally in the cryptocurrency market. This downturn followed the start of XRP's rally on March 19 after news of Ripple's settlement with the SEC, where the company agreed to a $50 million fine.
XRP/USDT Chart Analysis
Technical analysis of the daily chart reveals two bearish patterns: a head and shoulders formation and a descending triangle. These patterns suggest potential downside risks for XRP. If the $2 support level fails to hold, XRP could experience a 40% drop, reaching $1.20. However, the $1.76 zone may offer some support thanks to the 200-day moving average.
Ripple's Market Outlook
The current market structure still leaves uncertainty about XRP's long-term prospects. Reclaiming the $2.50 level could reverse the current trend and return the momentum to the buyers. However, if the head and shoulders pattern confirms, it could signal a prolonged decline, giving sellers control.
Despite XRP's current price decline, analysts believe that key support levels may provide the token with some protection. However, XRP needs to quickly regain lost ground to prevent further declines.
