Can Ripple hold above $2.85 today?

Ripple’s XRP token is facing potential selling pressure this week with critical support levels now being tested. Major holders sold off 460 million tokens, triggering a 13% price drop over the course of about a week, with $2.85 now being eyed by traders as the next support frontier.

This situation has changed the Ripple price forecast from bullish to cautious according to crypto.news analysts.

Current XRP price scenario

Major wallets began reducing their exposure to a potential price drop in anticipation of Fed Chair Jerome Powell’s speech which will take place on Friday, detailing new Federal Reserve policies that could impact price.

If Powell signals interest rate cuts, liquidity and risk appetite could boost crypto prices, but a hawkish tone may trigger further sell-offs.

As a result, XRP is now trading at $2.90.

Breaking out of a symmetrical triangle trading pattern, XRP dropped under the 50-day moving average and slipped from the $2.95 price point seen yesterday. Upcoming support levels include $2.74 and $2.63. XRP price has dropped by -11.6% over the last 7 days and by -18.52% in the past month.

Key Signs XRP could slide lower

1: High profit margins

93% of the circulating supply of XRP is in profit. While this is, of course, a positive result for holders, it could prompt many to take profits at this juncture, possibly leading to a selloff.

2: Bearish technical structure

The RSI has dipped to oversold territory, with candlestick formations

Indicators confirm the weakening structure. The RSI has dipped to 35, approaching oversold territory, while candlestick formations such as “three black crows” leading to analysts to consider a bearish scenario.

A short-term price bounce could follow this kind of oversold reading, but the overall forecast remains cautious/negative for the time being. This situation would be reviewed if XRP could make it back to the resistance band identified at $2.95 – $3.15.

3: Next support levels

If XRP is seen to break below $2.85, as several signs are now flagging as a possibility, the next support levels are $2.74 and perhaps $2.63. However, traders would need to exhibit strong confidence in buying the dip in order for XRP to stabilize. Otherwise, any upcoming correction has the potential for further downside.

XRP price prediction for today

All depends on whether XRP can hold at $2.85 today and throughout the week as we approach Powell’s speech. A bounce could trigger upside towards the $3.02 range, although as stated, the momentum shown on chart indicators show that sellers are currently holding the reigns.

As such, the current Ripple crypto price prediction is somewhat bearish, with current projections indicating a possible slide to $2.74.

Crypto.news analysts recently predicted XRP’s current slide below $3.

Traders might do well to keep expectations balanced, as the short-term outlook for Ripple remains defensive until key resistance levels are reclaimed.