XRP Price Dips Below $2.3: Analysis & Outlook
XRP, the native cryptocurrency of Ripple, recently broke below its $2.3 support level, sparking concern among investors. This decline follows a period of range-bound trading, despite positive developments such as the SEC's review of the WisdomTree XRP Trust. While the review hasn't yielded immediate approval, it indicates increasing regulatory focus on XRP.
XRP Price Action and Technical Analysis
- Trendline Break and Range Formation: XRP initially surpassed a descending trendline resistance, but subsequently formed a range between approximately $2.08 and $2.60.
- Mid-Range Support Breaks: The crucial mid-range support at $2.27 has been broken, suggesting further downside potential.
- Bearish Indicators: Several technical indicators, including the Chaikin Money Flow (CMF) at -0.07 and the Directional Movement Index (DMI), point to increasing bearish momentum. The On-Balance Volume (OBV) also shows a downward trend.
Open interest surged to nearly $5 billion, indicating significant market activity. However, the recent price action contradicts this, suggesting a potential disconnect between speculation and actual market sentiment.
Source: XRP/USDT on TradingView
Intensifying Selling Pressure
The 1-month liquidation heatmap shows significant selling pressure in recent days, with a remaining liquidity cluster around $2.05. This suggests a potential further price drop toward $2.00-$2.05, unless selling pressure eases substantially. The current market conditions indicate caution is warranted.
Source: Coinglass
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Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves significant risk.