XRP Slumps 18% Amid Bitcoin Rally, Tests Key Support
1min read XRP, the native cryptocurrency of the Ripple network, has experienced a significant downturn, currently trading at around $2.30 after a decline of more than 18%. This drop follows a brief rally in the broader cryptocurrency market, which saw Bitcoin reach $95,000. According to analyst Josh of Crypto World, XRP's price movements are closely tied to those of Bitcoin and the broader stock market.
XRP recently attempted to break above the resistance zone between $2.65 and $2.80 but failed to sustain the momentum, retreating back below this level. The next crucial support zone for XRP lies between $2.25 and $2.30. If the price bounces from this level, there could be a short-term recovery. However, if it breaks below $2.25, a further drop towards $2 or even the $1.95-$2.05 range is likely, making this zone critical for XRP's near-term prospects.
Despite the recent pullback, there are signs of bullish price action for XRP. The cryptocurrency has formed higher highs in both price and RSI (Relative Strength Index), suggesting a possible shift towards a more bullish market structure. This development makes it less likely that the current bearish divergence will continue.
Bitcoin's price movements are likely to influence XRP in the short term. If Bitcoin continues its sideways movement or declines further, XRP may mirror these actions. It is expected that XRP will experience some consolidation before making a bigger move.
Short-term indicators and overbought conditions suggest that XRP may be due for a pullback. The RSI recently indicated overbought conditions, which historically has led to price pullbacks for XRP. However, the RSI is now resetting to more neutral levels, which may indicate a pause in the current bearish price action.
