XRP Struggles at $2.22, Facing 12% Drop Risk

XRP is currently facing a critical juncture as it struggles to break above the $2.60 resistance level, leading to a sideways trading pattern. This uncertainty is exacerbated by the broader crypto market's renewed selling pressure, making it difficult for altcoins like XRP to establish a clear direction. The token's inability to push higher has left it vulnerable to further consolidation or downside movements.

The overall risk-off sentiment in the market is contributing to the challenges faced by XRP. Investors remain cautious, and bulls are now tasked with defending key support zones to prevent a deeper correction. XRP is approaching a critical demand area that could significantly influence its short-term trajectory.

Crypto analyst Ali Martinez has shared insights on the potential bullish scenario for XRP. According to Martinez, if XRP can break above the $3 mark, it would invalidate the current head-and-shoulders pattern forming on the chart. This move would flip the market outlook in favor of the bulls, potentially triggering a major rally.

XRP's price action reflects the broader market's indecision, with the token showing resilience but remaining locked in a wide range. The recent failure to break above the $2.60 resistance level has added to investor concern, as selling pressure appears to be creeping back into the market. Martinez highlighted that a breakout above the $3 mark would invalidate the head-and-shoulders pattern, which is typically associated with trend reversals.

Until this breakout occurs, the head-and-shoulders structure remains in play, and downside risks cannot be ignored. Investors are closely monitoring XRP as it trades near critical support and resistance levels, knowing that the next breakout or breakdown could shape its direction for weeks to come. For now, XRP remains caught in a tight battle between bearish pressure and bullish potential.

Currently, XRP is trading at $2.22 after losing the critical $2.40 level, which aligns with both the 4-hour 200 moving average (MA) and the exponential moving average (EMA). This breakdown has weakened short-term momentum, placing bulls in a defensive position as selling pressure begins to build. The $2.20 level now stands as a key support zone that must be defended to avoid a deeper correction.

To regain strength and shift momentum back in favor of the bulls, XRP must reclaim the $2.35 level in the coming sessions. A move above this resistance zone would indicate renewed buying interest and potentially trigger a push back toward the $2.60 range. However, if XRP fails to hold above $2.20, the market could see a sharp drop toward the $2.00 mark, a psychological and structural support level that has held in previous corrections. Such a move would likely confirm bearish dominance in the short term and further delay any potential breakout.

As volatility continues to build, the next few hours could be crucial for XRP’s short-term trend direction. The market's overall uncertainty and the token's current price action highlight the importance of key support and resistance levels in determining XRP's future trajectory. Investors and analysts alike are watching closely to see if XRP can break above the $3 mark and invalidate the bearish pattern, potentially flipping the outlook in favor of the bulls.