XRP struggles to break the key resistance at $1.95, shifting bullish momentum to bearish pressure. Traders are now eyeing the critical support at $1.77, a breach of which could trigger a significant correction towards $0.80. Critical analysis of Ripple's cryptocurrency at this pivotal phase.
The price of XRP is navigating through a delicate period in the markets. After several unsuccessful attempts to break through the psychological and technical threshold of $1.95, the cryptocurrency is experiencing increasing selling pressure. Indeed, $1.95 is a previous major historical support level. And if this support transforms into resistance, XRP will likely seek lower levels around $1.6.
This persistent resistance at $1.95 is no coincidence. It represents a major technical level where significant sell orders are concentrated, preventing the price from continuing its progression. Each rejection at this level reinforces the conviction of the bears and weakens the bullish structure, creating an environment conducive to a more pronounced correction.
The $1.95 level acts as a real wall for XRP. Repeated breakout attempts have all ended in failure, generating double top or triple top configurations on medium timeframe charts. These bearish patterns suggest an exhaustion of buying power and a progressive takeover by sellers.
The accumulation of these successive rejections creates an increasingly solid resistance zone. Traders who bought near this level find themselves trapped in losing positions, amplifying selling pressure with each new rebound attempt. This dynamic considerably weakens XRP’s price structure.
But nothing is decided yet. If XRP recovers this support, the daily MTC-Rainbow indicator points to a target between $2.15 and $2.18 in the coming days. That represents a gain of nearly 10%.
The loss of the $1.77 level represents the most feared scenario for XRP holders. This price corresponds to a major support that has historically served as a floor during previous consolidations. Its breakdown would open the door to a cascade of automatic liquidations and would likely trigger a wave of panic selling.
However, an Order Block on the 6 hour chart has formed below its price at $1.77, indicating institutional accumulation. For now, XRP could trade between the order blocks at $2.2 and $1.77 for several weeks before seeing a clear direction.
The next major support is found around $0.80, representing a potential drop of more than 50% from current levels. This zone corresponds to Fibonacci retracement levels and former resistances that became supports during the previous bullish phase. Such a move would mark the complete collapse of the recent bullish structure and would require several weeks, even months, to rebuild a solid base.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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