XRP Breaks Below $2.50, Enters Bearish Trend

XRP, the native cryptocurrency of the Ripple network, has been experiencing a bearish trend, with its price breaking below the crucial support level of $2.50. As of now, XRP is trading at $2.28, marking an 8% decline from its previous levels.

The breach below the $2.50 support mark is significant, as it has historically served as a key indicator for price direction analysis. This development has led to the formation of a bearish trend line on the hourly chart, with strong resistance at $2.48880. The Relative Strength Index (RSI) of XRP suggests oversold conditions, potentially signaling a short-term bounce.

The decline in XRP's price began after it consistently failed to surpass its $2.75 resistance ceiling and reach a new all-time high. This rejection of an upward price trajectory sparked a fresh selling tendency in the market, as XRP plummeted through several support levels at $2.65 and $2.55.

Analysts consider the 100-hourly Simple Moving Average and the $2.50 price point as critical factors in determining market sentiment and price directions. With the support level now below $2.50, XRP's price has taken a downward turn, indicating a bearish market. However, the digital asset may still experience short-term volatility.

Chart patterns reveal a bearish trend line that forms a resistance at $2.4880, aligning with the Fibonacci retracement level of 50% of the current downward movement from $2.7450 to $2.2310. Traders looking to match potential price targets should consider initial support marks close to $2.250, with $2.220 serving as a substantially better support zone for new investors.

The next major breakthrough or breakdown of XRP's pricing will depend on its support level sitting at $2.120. Additionally, the $2.050 level is serving as another support level to watch out for, as the bearish trend continues to unfold.