XRP Price Drops 4% as Selling Pressure Increases

The XRP price experienced a significant price drop during the first US trading period. The declining XRP price shows that investors hold negative feelings about the market. However,  analysts in the market predict XRP could achieve value recovery in the future.

XRP price dropped significantly during the first US trading period. The token fell by nearly 4% to trade around $2.2. Its 24-hour trading volume also dropped by 29% to $6.86 billion.

The RSI is now approaching the oversold zone, which indicates increased selling pressure. Many investors are worried that if selling continues, it may lead to further losses for the token.

On the other hand, large investors, known as Ripple whales, have dumped over 370 million XRP recently. This sell-off has added to the negative market sentiment.

CoinGlass data also shows a 2% drop in XRP’s Futures Open Interest. The decreasing short-term price performance metrics show that investors have reduced their faith in the token.

Will XRP Price Drop Below $2?

Analyst CasiTrades has completed the analysis of XRP price correction and approaches its final phase. The analyst anticipates that XRP token values will decline to $1.97 after which it will reverse upward.

One trader in the market foresees XRP price reaching $1.75 because of a detected Head and Shoulders pattern. The bearish Head and Shoulders pattern confirms upcoming negative price action. However, CasiTrades does not support the $1.75 projection using subwave analysis methods.

According to CasiTrades, higher-timeframe analysis demonstrates bullish divergence. XRP price signals the start of a potential recovery phase after reaching its lowest point.

Meanwhile, investors are following Bitcoin recent movement to determine their next course of action. The Bitcoin price is currently testing support at the 0.382 of the Fibonacci level.

If there is a bullish movement in Bitcoin price, then XRP price also might bounce back. However, if Bitcoin price falls, XRP price might reach a low of $1.75 or even below that figure. Earlier, analysts predicted its correction at $1.6.

Key Support and Resistance Levels for XRP Price

Crypto analyst EGRAG CRYPTO states that XRP price must hold above $2.35 to stay in a bullish trend. If this support holds, XRP could target the $3 mark soon. Breaking above $3 may trigger a larger rally.

However, a close below $2.2 could increase the risk of a deeper correction. Furthermore, EGRAG CRYPTO highlights $1.7 as a key support level if bearish momentum continues.

If XRP price drops below this level, it may struggle to recover in the short term. Investors must watch price action closely to gauge market direction. A recovery above key levels could restore confidence in Ripple token potential.

What Happens If XRP Price Enters a Bullish Cycle?

Interestingly, analyst Dark Defender predicts XRP price may regain bullish momentum as RSI nears the oversold zone.

He suggests that if XRP price holds above $2.35, the first wave of recovery could push it to $3. A breakout above $3 could lead to further gains in the coming weeks.

If momentum strengthens, XRP price could target $5 and later $8. This prediction aligns with previous bullish forecasts. However, resistance levels at $2.44, $2.99, and $5.85 may challenge the price recovery.

Dark Defender also highlights $1.88 and $1.91 as key support levels. Holding these levels could prevent a deeper drop and confirm bullish strength. The market’s reaction to these support and resistance points will determine XRP’s future trend.

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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