XRP Facing Bearish Pressure, $2.30 Support Level Under Threat

XRP, the native cryptocurrency of Ripple, is facing increased bearish pressure as it struggles to maintain its foothold above the $2.30 support level. Market indicators suggest escalating sell-offs, raising concerns among investors about a potential drop to lower support levels.

The cryptocurrency has been trading below the 20-day Exponential Moving Average (EMA), highlighting a bearish trend that has investors worried about a possible decline to lower support levels. According to insights from COINOTAG, if the bulls fail to defend the $2.30 level, a decline to $1.48 could become inevitable.

Recent analysis shows that XRP is caught in a sideways trading range, oscillating between $2.76 and $2.30 since early February. This stagnation reflects a delicate balance between buyers and sellers, with pressure now shifting towards sellers as bearish indicators become more pronounced. While XRP has previously seen support at $2.30, the recent performance of the token suggests that this level is under threat.

The Chaikin Money Flow (CMF) indicator has turned negative, now sitting at -0.04, signifying a potential outflow of capital from XRP. This shift implies a dwindling buying interest among traders, creating a scenario where prices may soon dip further. The CMF is a vital metric, providing insights into the strength of money flow based on a combination of price and volume. A negative CMF, especially during range-bound movements, typically indicates that sellers are more active than buyers, hinting at a potential breakdown once momentum shifts.

With XRP trading below its 20-day EMA, the current sentiment is decidedly bearish. The 20-day EMA serves as a crucial resistance point. When prices fall below this moving average, it validates the downward pressure and highlights further declines may be on the horizon. This scenario indicates that traders should prepare for potential volatility as supplies increase and demand wanes, positioning XRP closer to testing lower support levels.

If the current bearish momentum prevails and XRP breaks below the $2.30 support level, the next significant target could be around $2.13. However, an extended sell-off could lead XRP down towards $1.48. This series of drops emphasizes the critical importance of monitoring incoming market trends. Conversely, for a bullish development