XRP Price Struggles Below $2 Amid Rising Selling Pressure

By: Eliza Bennet

The recent trajectory of XRP has been marked by persistent declines as the cryptocurrency struggles to find stability beyond the $2 threshold. Initially, XRP attempted to forge a recovery, moving above $2.120, but this attempt mirrored the struggles seen in major cryptocurrencies like Bitcoin and Ethereum, both of which failed to hold their gains in recent market conditions. As the market sentiment softened, XRP fell beneath the critical $2.050 resistance, rendering the asset vulnerable to further declines.

XRP's price is now languishing below the $2.050 mark, and notably under the 100-hourly Simple Moving Average. A descending trend line, with a current resistance at approximately $2.080, is further pressurizing the asset, signaling potential further bearish movements unless there is a notable breakthrough. The attempt to rebound has been met with robust resistance, particularly at the 50% Fibonacci retracement level from the swing high of $2.141 to the recent low of $1.9575. Market analysts suggest that without a closing price above $2.080, XRP could continue its descent.

Moreover, technical patterns on the XRP weekly chart reveal a 'megaphone' formation, potentially drawing the asset's price toward a target of $0.88, should bearish trends prevail. Such patterns coupled with mounting selling pressures have led numerous investors to offload their XRP holdings, often incurring losses in the process. Despite these challenges, XRP's immediate support levels are identified at approximately $1.950 and $1.920. However, should the asset breach these supports, it might face more severe corrections, with next major support predicted around $1.8450, followed by the $1.80 zone.

Technical indicators strengthen the bearish outlook, with the hourly MACD gaining momentum in the bearish territory and the RSI (Relative Strength Index) lingering below the 50 threshold. As the wider cryptocurrency market grapples with liquidations and bearish sentiment, XRP's path to recovery appears tenuous unless it can breach its immediate resistance levels decisively. Investors and market participants remain vigilant, tracking potential support and resistance shifts and external crypto market influences.