Following a perfect bullish run that took XRP price to new highs above the $3.25 mark, it has since experienced a pullback below the key psychological price point of $3 today. This has raised concerns in the mind of investors that the coin may move even lower in the coming days.
The XRP price is currently falling, and it appears that it may be losing the positive momentum that pushed it to multi-year highs.
The price action follows a period of heavy whale movements, including a $175 million XRP transfer by Ripple co-founder Chris Larsen, according to a recent report.
XRP Price Prediction: Where Is Ripple’s XRP Headed?
The chart shows the bearish formation that took place following the XRP crypto marked an upward resistance at around the price zone of $3.50 & $3.75. After this, a refusal led to a massive downside, forcing the price down to $3.00. The nearest support level is somewhere between $2.75 and $3.00.
Moreover, the $3.25 region that has served as a breakout spot has now turned into resistance. It is also a further sign of weakening bullish activity in the shorter time frames.
At the time of writing, XRP was exchanging hands at $3.02, which is perilously close to falling beneath the support level of $2.75. A decisive break below this level could open the door for a longer correction. The daily chart shows a close below $2.50 or to the level of $2.31 is possible as it acted as a very good period of consolidation previously.
The Relative Strength Index (RSI), which had previously been in overbought territory at a value of 80, has now declined to 52.50. This drop in RSI, coupled with decreasing trading volume indicates that the bulls are loosening their grip.
Chart analysis shows the inability of XRP to maintain above the value of $3.00 and several rejections at $3.25 increase the chances of an even more powerful pullback. Although the major support at $2.75 remains intact, currently, the price structure and volume along with RSI are bearish.
A price drop below $2.75 would leave a possibility of a longer correction in the near-term future. On the other hand, the altcoin could reach a maximum of $3.25 or $3.50 in an extreme bullish reversal condition.
The immediate future of XRP’s Price depends on whether this support level holds. Technical analysts and traders are closely watching volume, the RSI and the price action to determine if this is a healthy correction or the start of a new bearish trend.
Also Read: BDACS Unveils Regulated XRP Custody in South Korea
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Crypto asset investments carry regulatory risk and are not suitable for all jurisdictions.
