XRP Key Loss Support: Three Important Price levels to Monitor Subsequently
**Hey There!
XRP's current situation is shaping up to be a nail-biter for investors, as the digital asset loses its 50-day EMA support and faces fresh pressure. This technical pivot, which had been crucial during XRP's consolidation phase, is now a thing of the past, making the asset more susceptible to downside risks.
Where's the danger?
XRP is currently trading at approximately $2.17, skidding below both the 50 EMA (around $2.18) and the descending trendline that's been holding back price action since early Q1. The latest bullish attempts to burst through this long-standing downtrend have been thwarted by this significant rejection.
What's next on the list?
Three critical price points should be kept on your radar as the drama unfolds.
- $2.00: This level corresponds with psychological round-number support and the 200-day EMA. It served as a launching pad for the price bounce-back in early April, and a return to this area may test XRP's overall upward trend. A significant bearish sign would be a failure here.
- $1.95: This is a vital level that corresponds with a previous breakout zone and the lowest boundary of the channel in which XRP has been trading. The bullish structure might crumble if the price dips below this, potentially triggering a chain reaction that leads to lower supports.
- $2.22: This is the immediate resistance that forms at the intersection of the descending trendline and the 50 EMA. A retest of the $2.40 zone might become viable if there's a clear break and close above this level, invalidating the current bearish momentum.
Thinkin' 'bout the indicators?
The Relative Strength Index (RSI) at 49 indicates neutral-to-slightly-bearish sentiment, and the volume remains moderate but unimpressive.
What's the dealio?
Without a dramatic reversal or a sudden surge in buying pressure, XRP seems primed to continue its gradual descent towards more robust support. The market will be paying close attention to those three levels to catch any potentially game-changing moves.
Keep it rollin'
Extra Deets:
XRP's technical outlook showcases a mixed bag of bearish signals and potential upside opportunities. If XRP manages to break above the $2.22 resistance level, it could spark a 7% rally, taking it to $2.36, then $2.59. However, a failure to hold the $2.13 support could trigger a drop to $1.96, aligning with the $1.95 threshold mentioned. Below $1.96, $1.90 becomes vulnerable, while some analysts warn of a deeper plunge to $1.40 if bearish momentum intensifies.
The 4-hour chart displays a falling wedge pattern on the brink of breakout potential, while the daily RSI at 54 implies neutral-to-bullish momentum. However, derivatives data reveals $4.89M in long liquidations, suggesting excessive bullish leverage and potential for further downside.
Key price thresholds to watch include:- $2.22: Breakout level for bullish confirmation- $1.95-$2.00: Critical support zone where failure could accelerate selling- $1.40: Worst-case scenario if macro conditions deteriorate
While experts like Standard Chartered predict $5.50 and Egrag Crypto foresees $17 by year-end, contingent on regulatory clarity and ETF approvals, the extended SEC lawsuit timeline to June 15 adds uncertainty. Institutional interest in RippleNet's cross-border solutions, however, provides fundamental support.
- The current situation of XRP is causing concern for investors as it loses its 50-day EMA support and faces increased risks.
- XRP is trading at approximately $2.17, falling below both the 50 EMA and a descending trendline that has been stabilizing the price action since early Q1.
- Three significant price points to watch are the potential supports at $2.00, $1.95, and $1.90, and the resistance at $2.22.
- The Relative Strength Index (RSI) at 49 indicates a neutral-to-slightly-bearish sentiment, with moderate but unimpressive volume.
- Without a significant reversal or surge in buying pressure, XRP appears ready to continue its gradual decline towards more robust support.
- Key price thresholds to monitor include the potential breakout level at $2.22, the critical support zone at $1.95-$2.00, and the worst-case scenario at $1.40, with institutional interest in RippleNet's cross-border solutions providing fundamental support.
