The mid-March rejection brought a significant decrease in XRP’s price over the past week, and it is now trading back around its crucial support level. A breakdown from this support could fuel a major price crash.
Following past months of reductions, XRP recorded substantial losses but has managed to stay well above $2 – a holding crucial support level.
After bouncing off the support level last month, XRP recovered but later failed to push above the $2.6 level due to a rejection. This led to a drop and the price rolled back to the mentioned crucial support yesterday.
Looking at the setup, the bears are technically back in action. Though it is uncertain if they will overcome the support level this time as several attempts to scale through it have proven abortive over the past months.
However, if they successfully scale through the support, we can expect a major crash to a new multi-month low. Such a crash will validate the new bearish pattern forming on the daily chart.
Failure to overcome this crucial support might result in another bounce, which could bring small gains before resuming bearish at full speed. But if XRP sustains such a bounce, it must reclaim $3.4 before considering a trend shift.
XRP’s Key Level To Watch
Source: Tradingview
Crossing down $2, the potential support levels for drops would be $1.77 and $1.53. Apart from $1.28, the $1 level is considered the next key support to watch for a dip.
If the price bounces back above the immediate support level, it must retake the recently rejected $2.64 resistance level before we can consider a bullish move to the $2.99 and $3.4 resistance levels in the future.
Key Resistance Levels: $2.64, $2.99, $3.4
Key Support Levels: $2, $1.77, $1.53
- Spot Price: $2.144
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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