This week, Ripple's XRP is underperforming compared to the growth seen in major cryptocurrencies like Bitcoin and Ethereum. The cryptocurrency's value has declined, influenced by market pressures and the culmination of Ripple's settlement with the SEC.
XRP Market Situation
Despite a recent rally starting after the SEC settlement on March 19, XRP is once again declining. Priced at $2.37, the cryptocurrency has dropped over 5% in the last seven days, with a significant 3.4% slide in the last 24 hours. Trading volume has decreased sharply from over $4 billion to $2.9 billion, a drop of over 39%.
XRP/USDT Chart Technical Analysis
Analyzing the daily XRP/USDT chart reveals two concerning bearish patterns: a head and shoulders formation and a descending triangle. Both suggest potential downside risks for XRP. If XRP can break above $3, this pattern might be negated. Currently, XRP is trading above the 20-day moving average (MA), however, caution is warranted due to resistance levels and the downward trend.
Forecast and Possible Scenarios for XRP
If XRP fails to hold the $2 support level during the next test, a potential 40% fall to $1.20 could occur. The $1.76 zone, aligning with the 200-day moving average, may provide some support for buyers. A completion of the bearish pattern could signal a longer-term downtrend for XRP, with sellers gaining control.
The current market structure calls for caution when predicting XRP declines. Unless the cryptocurrency reclaims $2.50 levels, the risk of downward movement remains. This area could prove crucial for shifting market momentum.
