XRP Breaks Support, Bears Dominate as $2.10 Target Looms

Ripple's XRP token has recently experienced a significant shift in its price trend, moving from an upward momentum to a downtrend. This change comes amidst ongoing market uncertainty, with the asset breaching its prolonged support level of $2.50 and dropping by 5% at the time of writing.

Technical analysis by AMBCrypto suggests that XRP turned bearish on the four-hour timeframe after breaking down from an ascending triangle pattern. This breakdown caused a breach of the crucial $2.50 support level, partially confirming that XRP could experience a significant decline. Based on recent price action, if the asset closes a four-hour candle below the $2.50 mark, there is a strong possibility of a 13% drop to the $2.10 level in the coming days.

At press time, XRP was trading near $2.45, having dropped over 5% in the past 24 hours. However, during the same period, its trading volume surged by 70%, indicating increased participation from traders and investors. A rise in trading volume isn't necessarily a bullish sign, as it reflects both bullish and bearish activity, including position liquidations, token accumulation, and token dumping.

On-chain metrics reveal a mixed sentiment among investors and long-term holders. Data from Coinglass shows an outflow of over $13.65 million worth of XRP tokens in the past 24 hours, indicating potential accumulation that could drive upside momentum and buying pressure. However, the prevailing market sentiment suggests that this may not be enough to trigger a significant XRP rally.

Besides the bullish outlook from long-term holders, traders were over-leveraged at major liquidation levels of $2.40 on the lower side and $2.55 on the upper side. If market sentiment remains unchanged and the price drops below $2.40, nearly $35.50 million worth of long positions will be liquidated. Conversely, if sentiment shifts and the price rises to $2.55, over $40 million worth of short positions will be liquidated. These on-chain metrics and technical analysis show that bears currently dominate the market, which could push XRP lower in the coming days.