XRP Plunges Below $3: Key Levels to Watch

XRP Loses $3: 3 Price Levels to Watch Next

The cryptocurrency market has witnessed a significant downturn, with XRP being one of the most affected coins. The native token of Ripple has dropped below the $3 mark, a key support level, and is currently trading at around $2.80. This decline comes amidst a broader market sell-off, with Bitcoin and Ethereum also experiencing notable losses.

The recent price action of XRP has been characterized by a sharp increase in trading volume, with over $6 billion worth of XRP changing hands in the past 24 hours. This surge in volume is primarily driven by heightened selling pressure, as investors rush to exit their positions. Over the past week, XRP has dropped by more than 10%, reinforcing its bearish trend and signaling a challenging week ahead for traders.

Technical indicators suggest a clear bearish sentiment surrounding XRP. The Moving Average Convergence Divergence (MACD) chart reflects a steady increase in red histograms, confirming that selling pressure is outpacing buying interest. Additionally, the MACD averages continue to show a bearish convergence, amplifying investors' concerns. The Simple Moving Average (SMA) indicator has consistently acted as resistance, preventing XRP from gaining upward momentum. Furthermore, a sharp downward curve in the daily chart indicates that the token is likely to remain bearish this week.

For XRP to recover, buyers must regain control and push the price back to $3. If momentum intensifies, a strong bullish move could even help XRP test the $3.50 resistance level. However, this remains uncertain given the prevailing market conditions and bearish sentiment. On the flip side, if selling pressure continues, XRP risks breaking its $2.75 support level and plunging further. If bears dominate the crypto space, the next support level at $2.50 could be tested. With the broader market also facing challenges, XRP's short-term future hangs in the balance.