XRP, the fourth largest cryptocurrency by market capitalization, is approaching a crucial price level that could significantly impact its future trajectory.
Current State of XRP
The cryptocurrency market faced additional selling pressure on Wednesday, with many cryptocurrencies trading down. In the last 24 hours, crypto liquidations reached $270 million, with bullish longs accounting for the majority at $161 million. At press time, XRP had dropped 1.61% over the last 24 hours to $2.11 and was down 14% weekly. This level, near the $2 mark, could be decisive for XRP's short-term price action.
Key Support and Resistance Levels
A drop below the $2 mark would complete a bearish head and shoulders pattern, potentially leading to further declines. Critical support levels are expected near $1.80 and $1.60. On the other hand, a strong bounce from this level could rekindle bullish momentum, propelling XRP back toward the resistance at $2.20 and higher.
Potential Development Scenarios
According to analysts, a decisive close above $3 could invalidate the bearish head and shoulders pattern, offering hope for a recovery. However, failure to sustain above $2 may invite further downside pressure. XRP remains higher, up 350% from lows of $0.50 in November 2024. The recent bull run, peaking at $3.40 in January, is supported by a symmetrical triangle on the XRP price chart. XRP is consolidating within this pattern, which often precedes a sharp move.
The future of XRP depends on its ability to hold key levels and market's response to the current situation. Traders continue to watch for the next moves.
