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XRP is facing downward pressure due to macroeconomic uncertainties, yet critical support levels suggest a potential rebound towards $3.
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Recent political events have contributed to a notable decline in XRP’s valuation, with the asset down approximately 35% over the past month.
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As highlighted by crypto analyst Egrag Crypto, “this is a bullish signal, indicating that buy orders are stacked in this critical region,” emphasizing the importance of the support level near $2.00.
XRP faces downward trends amid macroeconomic uncertainty, yet analysts see potential for recovery towards $3 as key support holds firm.
XRP Price Trades Above Potential Reversal Level
XRP’s current trading position above a crucial support zone may indicate a potential reversal. Egrag Crypto, a recognized market analyst, points out that XRP has repeatedly tested a support level just below $2.00. In fact, the price has dipped into this zone several times since December 2024, with bulls consistently entering to defend it. This behavior suggests a resilient buying interest in that area.
The analyst expresses optimism, stating that “when an asset retests a support level multiple times, it increases the chances of an eventual breakout.” Investors should particularly monitor key resistance levels at $2.20, $2.60, and $2.80, with a crucial psychological level of $3.10 to watch for significant upward movement.
However, caution is warranted as Egrag forewarns of potential breakdown risks if XRP fails to maintain above $2.20. “This crossover could introduce downward pressure on XRP,” he notes, referring to a bearish cross between the 21-day exponential moving average (EMA) and the 100 simple moving average (SMA).
Technical Indicators and Market Sentiment
Supportive sentiments are echoed by pseudonymous analyst Dark Defender, who identifies key support for XRP between $1.88 and $1.91. He predicts a rebound from these levels, projecting a price surge to $3.00 in the short term. Dark Defender aims for further advancements with subsequent price waves potentially targeting between $5 and $8.
The technical landscape suggests a complex interplay between bullish signals and bearish indicators. As the market navigates these indicators, traders are advised to remain vigilant to avoid potential pitfalls. This balance of risk and opportunity underscores the intricate nature of cryptocurrency market dynamics.
Seller Exhaustion Backs XRP’s Upside
Recent data from Cointelegraph Markets Pro and TradingView reveals that XRP’s considerable price drop over the last month has sent its relative strength index (RSI) below 30 across various timeframes, suggesting the asset has entered “oversold” territory. This is significant, as low RSI levels often indicate that an asset is undervalued, leading to potential buying opportunities among traders.
The CoinGlass RSI heatmap corroborates this, illustrating XRP’s RSI levels at 29, 28.7, and 29.8 across the 4-hour, 12-hour, and daily charts respectively. Such readings imply that the bearish momentum may be waning, prompting trader interest to increase as sellers appear exhausted.
As observed in recent price movements, XRP has started to consolidate, with recorded higher lows and highs in the 4-hour timeframe. This pattern suggests an upward target of around $2.20, but flipping this level into solid support will be vital for future bullish momentum.
Conclusion
In summary, while XRP is navigating through macroeconomic challenges and bearish pressures, analysts see promising signals near critical support levels that may lead to a recovery towards $3. With key indicators suggesting potential oversold conditions and seller exhaustion, traders should watch the critical resistance and support levels closely. A break and hold above $2.20 could signal the start of a new upward trend for XRP, positioning investors to capitalize on future price movements.
