The price of XRP has seen a decline of 3.12% today, with trading volumes reaching $2.95 billion. This drop has led to a breakdown of the critical support level at $2.40. Initially, many market participants hoped that the resolution of the XRP vs. SEC lawsuit would propel the token to new all-time highs. However, Ripple’s XRP has failed to meet those expectations, resulting in a price correction.
Technical indicators now suggest an ongoing bearish trend, with further declines expected this week. As a result, there has been a notable surge in online discussions, with many questioning why XRP is falling and whether it will continue its downward trajectory in the coming days.
Increased Volatility Surrounding XRP Price
XRP has formed a symmetrical triangle pattern on its 4-hour price chart, which has been in play for about two weeks. Typically, this pattern signals a bearish trend, suggesting that the price may continue its downward movement before any significant breakout attempt.
The Moving Average Convergence Divergence (MACD) indicator reflects an increasing bearish sentiment, as the red histogram continues to grow. Similarly, the 14- and 26-day exponential moving averages (EMAs) show a consistent bearish trend. These indicators point to continued downward pressure on XRP this week.
Additionally, a bearish crossover has been observed with the 50-day EMA on XRP’s chart. However, the 200-day EMA is currently acting as a key support level, adding some uncertainty to the future direction of the third-largest cryptocurrency by market capitalization.
Potential Price Targets for XRP
Based on current analysis, if XRP manages to hold above its support trendline within the triangle pattern, it could target a resistance level of $2.48. A sustained move above this point may see the price rise towards $2.70 in the near term.
On the downside, if bearish momentum strengthens, XRP could break below the triangle pattern, dropping to as low as $2.23. If bulls fail to regain control at that point, the price could potentially dip further, approaching a critical support level around $2 in the coming weeks.
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