XRP has declined over 5% in the past week, underperforming compared to major cryptocurrencies. Currently priced at $2.37, trading volumes have also dropped over 39%.
Current Market Realities for XRP
This decline follows the broader growth of other digital assets like Bitcoin and Ethereum, interrupting the rally initiated on March 19 following Ripple's settlement with the SEC, agreeing to pay $50 million of the $125 million fine.
XRP/USDT Chart Analysis
The XRP/USDT chart analysis reveals two bearish patterns: head and shoulders, and a descending triangle, potentially indicating downside risks. XRP is still trading above the 20-day moving average, despite resistance around the upper trendline of the descending triangle.
Future Prospects and Possible Scenarios
If XRP fails to hold the $2 support, a 40% decline to $1.20 is possible, although $1.76 might offer some support. A break below $2 could signal a long-term downtrend, while reclaiming $2.50 would indicate a trend reversal.
Given the current market state, XRP buyers should remain cautious. For a positive turnaround, the digital asset needs to surpass key resistance levels.
