- XRP faces downside risk with key support levels at $2.30 and $1.90.
- TD Sequential indicator warns of further weakness in XRP’s price action.
- Increased trading volume signals potential for more price swings in XRP.
XRP has been experiencing a notable uptick in volatility, which is largely a result of the broader downturn currently afflicting the cryptocurrency market. Analysts have been keenly observing XRP’s price movements as it nears crucial support levels vital for its next potential trajectory. As various bearish indicators emerge, traders must carefully evaluate the likelihood of a recovery or whether XRP will plunge below the psychologically significant $2 mark.
XRP Faces Significant Downside Risk Amid Market Decline
Crypto analyst EGRAG CRYPTO has raised alarm bells regarding XRP’s stability, pinpointing critical support levels at $2.30 and $1.90. According to EGRAG, if XRP falters to maintain its position above these thresholds, deeper corrections could ensue. The 21-day Exponential Moving Average (EMA) has become an essential tool for traders, signaling prevailing bearish momentum that could further hinder recovery efforts.
The sustained downturn in the crypto market has intensified the selling pressures on XRP, sparking considerable concern about further price reductions. This current price diminishment resembles past market cycles, where XRP frequently confronted robust resistance around the $2.50 price region. Given this backdrop, if bearish sellers continue to dominate, XRP could test the $2.30 level – a pivotal point that, if breached, may lead to the next support level at $1.90. Despite these risks, some analysts posit that such dips might present attractive buying opportunities for long-term investors seeking to capitalize on a historically bullish cryptocurrency.
#XRP – 21 EMA Update
Sorry for calling for this crash but the chart indicated it was a possibility.
We could see a drop as low as $2.30, with $1.90 being the last line of defense.
If you’re looking for a dip to buy, this is it. But don’t let fear hold you back!
We… https://t.co/LMGpbgj02M pic.twitter.com/pGEzNQqgAY
— EGRAG CRYPTO (@egragcrypto) February 2, 2025
TD Sequential Indicator Signals Further Weakness for XRP Price
<pMarket expert Ali Martinez has further substantiated the bearish sentiment surrounding XRP by pointing out the TD Sequential indicator, which surfaced with a sell signal just a week ago. This technical analysis method is widely utilized to pinpoint potential trend reversals, and those who acted accordingly by exiting their positions have successfully sidestepped the current downturn. Conversely, traders still holding XRP may be bracing for additional losses as bearish momentum appears increasingly entrenched.
XRP’s price trajectory has pointed decidedly downwards, showcasing a striking 9.19% decrease over a single trading day, leading its value down to $2.55. Notably, trading volume surged by an astonishing 402.02%, signifying increased participation from traders amid the slump. This surge has pushed the volume-to-market-cap ratio to a notable 25.49%, which often indicates a precursor to further price fluctuations and potential volatility.
If the prevailing selling pressure persists, XRP might find it challenging to muster sufficient momentum to make a recovery, raising concerns among its investor community about the sustainability of their positions in such turbulent market conditions.
