After a 5% Fall, Is XRP Headed for a Hard Landing Below $2.60?

• XRP is trading at $2.96, down more than 5%.
• The daily trading volume has surged by over 83%.

The 3.32% loss within the crypto market has stalled the recovery attempts. The assets are bleeding in pain, shedding the recent gains. Bitcoin (BTC), the largest asset, is hovering $115.2K, while Ethereum (ETH), the largest altcoin, currently trades at $4.2K. Notably, Ripple’s XRP has been trapped in a bearish hold.

With the bearish pressure, there are potential downside risks that could push the asset’s price to previous lows. The XRP price declined 5.02%, and it opened the day at around a high of $3.15 and, with the bears taking command, the price slipped toward a low of $2.95. 

As reported by CoinMarketCap data, at press time, XRP traded within the $2.96 mark, with its market cap reaching $176 billion. In addition, the daily trading volume surged by over 83.91, touching $6.5 billion. The Coinglass data reveals that the market has seen a $20.06 million liquidation event of XRP during this period.

Significantly, XRP breaking below $3 is likely a weakening bullish momentum. If the selling pressure continues, the next crucial supports are at around $2.60 and potentially $2, where the buyers might step in to stabilise the price.

Will XRP Bounce Back Stronger This Time?

Assuming the XRP strengthens its downtrend, the $2.90 support range might be found immediately. A steady fall below this mark could lead to a downturn toward $2.84. This downside correction may trigger the death cross to emerge. If the uptrend wave arrives, XRP could test the $3.02 resistance, and clearing this resistance zone might drive the asset to the $3.08 level or even higher, and unfold the golden cross. 

The Moving Average Convergence Divergence line and the signal line are below zero, which points to the overall bearish sentiment. Although the MACD crosses above the signal line in this zone, it is only a short-term momentum, not a full-blown bullish reversal. Moreover, the Chaikin Money Flow (CMF) indicator found at -0.31 hints at a strong selling pressure in the market. Also, the money is flowing out of the asset, as the investors are unloading positions rather than accumulating. 

XRP’s Bull Bear Power (BBP) reading, settled at -0.2023, is showing bearish dominance. The value is moderate, not extreme. Also, with the price trading below, it indicates downward momentum. Besides, the daily Relative Strength Index (RSI) is resting at 29.66, suggesting the asset is nearing the oversold territory, and it is due for a rebound if buyers step into the market.

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