XRP Plummets 7.97% to $2.04, Support Levels Under Scrutiny

XRP, the cryptocurrency, has experienced a significant decline of 7.97%, bringing its price down to approximately $2.04. This drop has put critical support levels under intense scrutiny, with the next 24-48 hours being pivotal in determining whether XRP can stabilize or continue its downward trajectory. The immediate short-term outlook is particularly bearish if XRP fails to maintain the $1.98 support level. In such a scenario, the price could potentially drop to the $1.90-$1.95 range, with a further breakdown below $1.90 pushing it closer to $1.80, thereby amplifying the downward pressure.

However, if the $1.98 level holds as support, there is a possibility for XRP to rebound, potentially climbing back to the $2.05-$2.10 range. A strong move past $2.10 could pave the way for a retest of $2.20. Looking ahead to the medium-term projection, if the price drops below $1.98, the bearish head-and-shoulders pattern on the daily chart could play out, pushing XRP toward $1.80. A deeper correction could bring prices as low as $1.50, depending on market sentiment.

On the other hand, if bullish momentum regains strength, XRP could break through $2.20, potentially targeting $2.40 in the coming week, provided the broader market conditions support such a move. Several key drivers will influence XRP’s price movement, including market sentiment, which will be heavily influenced by the trends in Bitcoin and Ethereum. Macroeconomic factors, such as investor reactions to global economic policies and changes in sentiment, could also increase volatility. Additionally, any positive developments regarding XRP’s adoption by institutional players could boost confidence and drive demand.

The next 24-48 hours are critical for XRP as it faces the ultimate test of its support levels. Whether it can hold the $1.98 support or breaks lower will set the tone for the short-term outlook. Traders should stay alert as the price is likely to experience heightened volatility. While the short-term outlook appears uncertain, long-term prospects remain promising. Investors should weigh broader market conditions before making any strategic trading decisions.