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Ripple’s $XRP is currently down by more than 18% and is trading at $2.30 levels. The broader market sentiment has turned red after a brief rally which saw Bitcoin hitting $95k. According to analyst Josh of Crypto World, $XRP is following the trends of Bitcoin and the broader stock market. After a short-term price pump, $XRP recently experienced a pullback, particularly after briefly breaking above the resistance zone between $2.65 and $2.80. However, the price is now back below this level,
Key Support and Resistance Levels
The next important support zone for $XRP lies between $2.25 and $2.30. If the price bounces here, 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. This zone will be critical for $XRP in the near future.
Price Structure and Indicators
On a more positive note, there are some signs of bullish price action. $XRP has formed higher highs in both price and RSI (Relative Strength Index), suggesting a possible shift toward a more bullish market structure. This makes it less likely that the current bearish divergence will continue.
Influence of Bitcoin
If Bitcoin continues its sideways movement or further declines, $XRP may mirror these actions. It’s likely that $XRP will experience some consolidation in the short term before making a bigger move.
Short-Term Indicators and Overbought Conditions
$XRP recently showed an oversold signal, which led to a short-term bounce. Now, the RSI is indicating overbought conditions, suggesting a pullback could be on the horizon. Historically, $XRP has shown price pullbacks after such overbought signals, and this time may be no different. However, the RSI is now resetting to more neutral levels, which may indicate a pause in the current bearish price action.