XRP Drops 6.7% After Failing to Surpass $2.2350 Resistance

XRP, the cryptocurrency associated with Ripple, has recently experienced a significant decline in price, falling below the $2.120 mark. This drop comes after the price failed to surpass the $2.2350 resistance level, leading to a bearish reaction that pushed the price below key support levels at $2.150 and $2.120. The price has since formed a new weekly low at $1.9832 and is currently consolidating losses below $2.10.

The decline in XRP's price can be attributed to its failure to clear the $2.2350 resistance zone, which led to a break below a short-term contracting triangle with support at $2.080 on the hourly chart. This technical breakdown has raised concerns about further potential losses for the cryptocurrency. If XRP fails to clear the $2.10 resistance zone, it could start another decline, with initial support on the downside near the $2.020 level and the next major support near the $2.00 level. A downside break and close below the $2.00 level could see the price continue to decline toward the $1.980 support, with the next major support sitting near the $1.950 zone.

On the upside, XRP's price might face resistance near the $2.070 level, with the first major resistance near the $2.10 level. The 50% and 50% Fib retracement level of the downward move from the $2.235 swing high to the $1.983 low is also near the $2.10 level. The next resistance is $2.1750, and a clear move above this level might send the price toward the $2.20 resistance. Any more gains might send the price toward the $2.2350 resistance or even $2.40 in the near term. The next major hurdle for the bulls might be $2.50.

Technical indicators for XRP/USD are currently bearish, with the MACD gaining pace in the bearish zone and the RSI below the 50 level. This suggests that the cryptocurrency may continue to face downward pressure in the near term. However, it is important to note that technical indicators are just one factor to consider when analyzing cryptocurrency prices, and other factors such as market sentiment and news events can also have a significant impact on price movements.

In summary, XRP's recent price decline has raised concerns about further potential losses for the cryptocurrency. While technical indicators are currently bearish, it is important to consider all factors when analyzing cryptocurrency prices. If XRP fails to clear key resistance levels, it could face further declines, but if it can break above these levels, it may see gains in the near term. Investors should remain cautious and monitor the situation closely.