XRP's Sudden Decline Raises Concerns Despite Bullish Market

XRP, the native cryptocurrency of the Ripple network, has experienced a sudden decline after a three-day streak of consecutive price increases. This unexpected downturn has raised concerns among investors, despite the generally bullish outlook in the broader cryptocurrency market.

The technical analysis of XRP's price movement reveals a prominent wedge pattern that has been intensifying. While the cryptocurrency has been fluctuating, sellers have encountered multiple support zones, and buyers have successfully established a genuine defense level. The 100-day moving average is currently flagged at $2.3, with the support range being $2. Additionally, Fibonacci analysis indicates that the prime support region for XRP is between $1.6 and $1.9.

A short-term analysis of XRP's price movement suggests that the $2.8 resistance level has been rejected, leading to a slight downfall. However, the cryptocurrency has found support at the wedge limit's lower outline, which is around $2.3. This support level is expected to prevent XRP's price from dropping significantly in the short term.

If the support level breaks, there is a possibility that XRP's price could slump down to the $2 price point. In such a scenario, there could be a prolonged liquidation due to the breakout. However, the lower standing of the wedge is considered strong, and it is expected to provide support for XRP in the short term.