- XRP has experienced a sharp 25% drop, failing to hold key support levels and testing new yearly lows amidst broader market turmoil.
- The price outlook remains uncertain, with potential for a rebound to $2.25 or further declines toward $1.50, depending on market sentiment.
As the cryptocurrency market continues to experience turmoil, investors are keeping a close eye on Ripple’s XRP price, particularly after its recent plunge. With the broader market losing 5.76% of its value, XRP’s performance is stirring questions about its short-term outlook. Will it rebound and reach $3, or could it dip further towards $1? Here’s a breakdown of what to expect this week.
Market Conditions and XRP’s Struggles
The cryptocurrency market has been facing a challenging week, with the total market cap falling from $2.61 trillion to $2.47 trillion. Bitcoin’s price has also taken a hit, dipping below $78,000, while Ethereum’s dominance dropped to a multi-month low. These bearish movements have affected XRP as well, which has failed to hold its key support level, leading to a drop to a new yearly low.
Ripple Price Takes a Heavy Hit
XRP has experienced a sharp decline of 25%, breaking through its crucial support zone of $2. This decline has brought XRP down to a low of $1.64, with an impressive trading volume of $15.58 billion. Despite this significant crash, XRP’s market capitalization stands at $108.52 billion, although it has posted a negative YTD return of -10.48%.
Bearish Sentiment Dominates XRP’s Market
Looking at the technical indicators, the Simple Moving Average (SMA) has been acting as a resistance point for XRP on the daily chart, reinforcing the bearish sentiment. The Moving Average Convergence Divergence (MACD) also shows a red histogram, signaling that the price of XRP may continue to experience downward pressure in the near term.
What’s Next for XRP Price?
In the event of a trend reversal, there’s a chance that XRP could retest the $2 mark. If it can maintain momentum above this level, the price may target $2.25. However, a bullish trend may not be enough to lift XRP to its higher resistance level of $3, unless there’s a significant market buyback or increased investor confidence.
On the flip side, if bearish sentiment persists, XRP could fall further, potentially testing the $1.75 mark. In the worst-case scenario, the price could dip to a multi-month low of $1.50.
XRP’s future largely depends on the overall market conditions and whether the bulls can regain control. If the market sees a strong reversal, XRP could climb back towards $2. However, with the current market pressure, further declines remain a possibility. Investors should stay vigilant and prepare for both upward and downward movements in the coming days.