XRP Price Holds Above Key Support Levels Despite Aggressive 20% Drop

XRP price is holding above key support levels after an aggressive 20% drop since last Sunday. Bulls have lost control, but despite the selling pressure

In the turbulent cryptocurrency landscape, Ripple’s XRP is encountering resistance as bulls attempt to regain momentum following a steep selloff.

Over the past Sunday, XRP has faced substantial selling pressure, leading to a 20% decline from last week’s highs. However, despite the bears’ initiative, XRP has managed to stay afloat above the crucial $2 level.

Nevertheless, with the bears still in control and the broader cryptocurrency market showing signs of fatigue after Bitcoin’s weekly support breakdown, further downside could be in store for XRP.

XRP Breaks Out Of Ascending Parallel Channel

According to top analyst Ali Martinez, XRP is breaking out of the ascending parallel channel, which could pave the way for further declines.

#XRP is breaking down from the ascending parallel channel, signalling potential further weakness in the coming weeks.

As long as XRP remains below the 200-weekly moving average, the broader bias remains bearish.

Next crucial level to watch is $1.65. pic.twitter.com/745yU9719x

— Ali (@ali_chartz) August 7, 2023

As long as XRP stays below the 200-weekly moving average, the broader bias remains bearish, with the next crucial level at $1.65.

This aligns with the broader cryptocurrency market, where most altcoins are struggling to recover from recent losses.

If XRP manages to hold above the $2 mark and begins to show signs of recovery, then bulls might be able to push for higher prices. But if this support breaks down, a deeper correction could follow, putting additional pressure on the broader crypto market.

XRP Bulls Try To Reclaim Momentum

XRP is trading below crucial levels as it tries to set the stage for another attempt at bullish price action amid the broader market selloff.

The entire crypto market has been in the crosshairs as Bitcoin failed to maintain weekly support, setting the stage for further declines and increasing selling pressure across altcoins.

Most major assets have struggled to hold their ground, with XRP also dropping sharply over the past few days as most altcoins come under pressure.

According to shared analysis by Martinez on X, XRP is breaking out of the ascending parallel channel, which could open the door for further declines.

If XRP fails to hold current demand levels, then it could continue lower, with the next crucial level at $1.65. This breakdown is part of the broader market weakness, as bulls are struggling to regain control after a period of strong selling.

Despite the bearish outlook, XRP is still trading above the $2.20 mark, where buyers are trying to defend the price from further declines. Short-term selling pressure seems to be easing, and if bulls can keep the price above this level, then a recovery could be possible.

However, if XRP fails to quickly reclaim the $2.40 level, then bears could take over and push the price lower. The next few days will be crucial for XRP’s price action, as the market is looking for either a reversal or continued weakness.