XRP remains caught in a consolidation phase as the market closely watches an upcoming SEC meeting scheduled for April 3. Speculation over whether the regulatory body will withdraw its appeal has left traders uncertain, contributing to heightened selling pressure.
XRP's Battle with Resistance and Market Pressures
Following recent price fluctuations, XRP has struggled to maintain its footing above key support levels. After breaking past the $2.20 threshold earlier in the week, the token slipped back to $2.10, indicating a lack of strong buying momentum. If the SEC’s decision is delayed or if concerns persist, XRP risks falling below the critical $2 mark. As of now, XRP commands a market capitalization of $122.3 billion but remains significantly below its all-time high of $3.84, hovering within a tight trading range of $2.05 to $2.50. Market sentiment suggests bearish forces could soon push the token toward an even deeper correction.
Indicators Point to Mounting Bearish Momentum
A series of technical indicators reinforce the notion that XRP is facing strong downward pressure. The Relative Strength Index (RSI) sits at 39, reflecting weak momentum well below the neutral 50 threshold. Meanwhile, the Commodity Channel Index (CCI) has plunged to -182.70, signaling that the asset is deep in oversold territory. Further confirming the bearish bias, the Stochastic Oscillator is at a concerning 11.67%, highlighting a lack of strong buying activity. The Awesome Oscillator, which remains in negative territory at -0.13, underscores the growing dominance of sellers in the market. Additionally, the Moving Average Convergence Divergence (MACD) indicator prints a negative reading of -0.06, reinforcing the bearish outlook.
The Risk of a Larger Decline
Given the overwhelming bearish sentiment, XRP faces the risk of a major downturn if it fails to hold key support levels. A drop below $2 could trigger a cascade of panic selling, potentially pushing the asset down to $1.80 or lower. Unless bullish traders step in to provide support, the most probable direction remains downward, with technical indicators offering little hope for a swift recovery.
External macroeconomic uncertainties are also impacting the crypto market’s volatility. Recession fears, labor market instability in the United States, and ongoing trade policy developments have all contributed to the recent volatility. However, for XRP, much depends on the outcome of the SEC’s decision regarding its appeal. If regulators opt to withdraw the case against Ripple, the market could see a significant shift in sentiment, potentially providing the token with a much-needed boost. Until then, traders remain on edge, watching for any developments that could influence XRP’s next move.
