XRP Drops 21% Since March, Holds Critical $2 Support

XRP, the cryptocurrency associated with Ripple, has recently returned to a critical support level following a significant price decline in mid-March. This support level, around $2, has been pivotal in preventing further drops, but the current market conditions suggest that a breakdown could lead to a substantial price crash. The cryptocurrency has experienced notable losses over the past few months, yet it has managed to maintain its position above the $2 mark, which serves as a crucial support level.

The recent rejection at the $2.6 level has led to a price rollback to the support level, indicating that bears are once again in control. However, previous attempts to breach this support have been unsuccessful, raising uncertainty about whether this time will be different. If the bears manage to overcome the support level, it could validate a new bearish pattern on the daily chart, potentially leading to a major crash and a new multi-month low.

On the other hand, if the support level holds, XRP could experience a bounce, resulting in small gains before resuming its bearish trend. For a trend shift to occur, XRP would need to reclaim the $3.4 level. Key support levels to watch include $1.77, $1.53, and $1.28, with $1 being the next critical support. If the price bounces back above the immediate support level, it must retake the recently rejected $2.64 resistance level to consider a bullish move towards the $2.99 and $3.4 resistance levels.

The formation of a Head and Shoulder pattern in the XRP price chart suggests a potential shift from an uptrend to a downtrend, a well-known bearish reversal pattern. This pattern, along with the recent death cross, indicates that XRP is facing stern resistance and could continue to decline. However, according to the analyst's forecast, XRP shows potential for bullish recovery in April 2025, driven by the closure of the SEC case and institutional adoption. Key price levels to watch include $2.00 and $2.20, with the potential for XRP to aim for its next targets if it can stay above these levels.

The recent downturn has put bulls on the defensive, with a decline of over 21% since March 19. The selling pressure has dominated XRP's trading, bringing the asset close to testing critical support around $2. Despite this, XRP bulls have shown resilience, quickly reversing declines and surging to $2.19 in the early Tuesday session. This defiance of bearish expectations highlights the ongoing struggle between bulls and bears in the XRP market.