XRP has surged by 13% in just 24 hours, grabbing the attention of global traders. However, this rapid increase comes amidst extreme market volatility. The burning question: will the $2 threshold hold, or are we witnessing a brief pause before another downward trend?
The $2 zone currently represents a major support level for XRP. It’s a psychological and technical level that concentrates significant buy orders. Historically, this threshold has played a pivotal role in price evolution. It alternately serves as solid support and stubborn resistance depending on market phases. The bulls’ ability to defend this floor will be decisive for short-term developments.
Traders are closely monitoring price behavior around this critical zone. If support gives way, analysts have identified several lower levels likely to attract the price. The first downside target would be around $1.80, followed by a more significant demand zone between $1.50 and $1.60. These projections are based on Fibonacci retracements and previous consolidation lows.
The selling pressure is gradually intensifying, as evidenced by the succession of red candles on daily charts. The RSI is approaching the oversold territory without actually entering it, suggesting that the bearish movement still has potential. Declining volumes during technical bounces confirm the lack of real commitment from institutional buyers.
Analysis of technical indicators paints a generally negative picture for XRP. The MACD shows a marked bearish divergence, while the Bollinger Bands are tightening, often foreshadowing a volatility explosion. The convergence of these signals with the imminent death cross reinforces the scenario of a significant correction in the coming weeks.
Market sentiment, measured by XRP-specific fear and greed indicators, is gradually shifting toward the caution zone. Crypto social media shows a clear decrease in positive discussions about the token, while bearish analyses gain visibility. This evolution in sentiment can create a self-fulfilling spiral where holders anticipate the decline and liquidate their positions.Experienced traders are adopting defensive strategies, placing tight stop-losses and reducing their exposure to XRP. Some, however, see this weakness as a medium-term accumulation opportunity, betting on a recovery once the correction is complete. The question remains where the true floor of this bearish movement will be.
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