XRP Price May Drop to $2 Before Recovery, Analyst Warns

XRP price is currently navigating bearish conditions, with the price trading at $2.3141, reflecting a 0.22% daily increase. Analyst best_analysts has identified a bearish breakdown from a symmetrical triangle pattern on the XRP/USDT chart, signaling the potential for further downside. However, the analysis also suggests a recovery may occur after reaching critical support levels near $2.

XRP Price Breakdown from Symmetrical Triangle Pattern

The chart of XRP/USDT has a breakdown of the symmetrical triangle, which suggests that the bears are stepping up their efforts. It can be seen that the price of XRP is continuing to fall which could mean that XRP is yet to find a strong support level for a possible reversal.

The support at $2.24 is still being held at the moment but further failure to move above this level may see a test of lower levels.

The next support level has been pegged at $2.19. If the price penetrates through the current range at $2.24. The $2.12 level corresponds to a previous consolidation zone and may act as short-term support. Key support is seen at $2.07-$2.00, with $2.00 providing a key technical level for buyers to enter the market, analysts say.

The bearish trend is backed by poor momentum indicators with XRP struggling to break through important barriers at $2.24. This pattern supports the idea of pulling lower towards the support level before any mean reversal could be expected.

Chances of Recovery after $2.00 Test

Best_analysts has given the following possible bull scenario if XRP strengthens in the region of 2.00 dollars.

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A bounce off this level could open up a move towards previous key resistances at $2.12,$2.19. This would mean that buyers are back in force and could lead to the change of the tide.

But a bullish reversal could be expected only on condition that buying pressure is maintained at these levels. The market would require higher trading volume and positive sentiment in order to rally and take the price higher.

If this reversal is seen in XRP, we could see the price targeting the $2.24 level. XRP could possibly even see higher prices in the coming days.

On the flip side, a breakdown of the $2.00 level might lead to a continuation of the bearish momentum with additional selling pressure. In the bearish case, the analyst stresses that the attention should be paid to the potential breakdown of these levels.

Technical Analysis and Momentum Signals

Ripple’s price analysis based on technical analysis gives a mixed picture for the current scenario of the XRP.

The chart recently had a Golden Cross, which is when the 13-period moving average crossed up the 49-period moving average. This is generally taken as a positive sign; although the price is still below the immediate resistance levels.

At the moment the relative strength index (RSI) is 44.39, which is below the midpoint of 50, thus indicating a weakening. This indicates reduced buying pressure and a somewhat bearish trend. A break and close above 50 on the RSI will present a buy signal while a break and close below 40 may suggest more selling pressure.

XRP news shows, trading volumes are low. This is raising questions over the direction of the market as the participants are in a state of uncertainty. The current low volume can be attributed to the fact that traders are consolidating, waiting for a more definitive direction.