This week, XRP shows a decline, significantly lagging behind the growth of other major cryptocurrencies like Bitcoin and Ethereum.
Market and Current XRP Position
Against the backdrop of corrections, the current XRP price is $2.37 after a fall of over 5% in the past seven days. The rally interruption began after Ripple's settlement with the SEC, where the company agreed to pay $50 million of the $125 million fine. Trading activity also decreased, with trading volumes dropping by more than 39%.
Review of the XRP/USDT Chart
The XRP/USDT chart analysis reveals two bearish patterns: a head and shoulders (H&S) formation and a descending triangle. These patterns indicate potential downside risks for XRP. However, a breakout above $3 could alter the current market dynamics.
Potential Risks and Outlook for XRP
If the $2 support does not hold, a decline to $1.20 is possible, although the $1.76 zone may offer some support due to its alignment with the 200-day moving average. To change the negative structure, XRP needs to significantly rise above $2.50.
With the current market structure, it's premature to predict heavy declines. However, to reverse the current downward trend, XRP needs to strengthen above $2.50.
