XRP Price Analysis: Potential Further Declines and Key Indicators
Cryptocurrency trading experts are issuing warnings about potential further declines in the value of XRP, suggesting it might drop below $2. Technical indicators are pointing towards a continuation of the current correction phase.
At the time of writing, XRP is valued at approximately $2.16, witnessing a decrease of 1.56% in the last 24 hours and over 8% throughout the past week.
XRP’s Bearish Momentum Likely to Persist
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On May 30, TradingView analyst Master Ananda highlighted in a post that XRP is exhibiting renewed signs of weakness. The ongoing bearish trend suggests the current correction phase may still have some way to go.
The decline began accelerating on May 12, with XRP facing increased selling pressure. It broke below the ascending green channel that had been established since early April, ending the brief bullish recovery that was initiated after surpassing the $1 resistance level.
A significant technical shift was marked by the breakdown from this ascending channel, characterized by a transition from higher highs to lower highs, three successive red daily candles, and widespread market weakness.
Despite the bearish trend, Ananda points out that the trading volume remains relatively low, indicating that the sell-off may lack strong conviction. However, he advises traders to be prepared for further declines unless a solid support level emerges.
Ananda’s chart identifies the next potential support zone, or “higher low,” between $1.60 and $1.85. This area previously served as a breakout zone in early April and may now act as a price floor.
Additionally, the 0.236 Fibonacci retracement level at $2.0350 is noteworthy. A break below this level, depending on broader market sentiment, might pave the way for prices to reach the $1.80 area or even $1.61.
Despite the short-term bearish outlook, Ananda maintains an optimistic view on XRP’s long-term potential. Long-term investors are targeting resistance levels at $2.70 and even $3.40 in anticipation of a future bullish reversal.
“While recovery can occur at any time, current indicators are bearish, with three consecutive days of red action and more than two weeks of declining prices. We remain bullish in the long-term, but short-term fluctuations are possible,” Ananda commented.
XRP’s Price Fundamentals
XRP’s recent decline has been largely influenced by overall market sentiment. If the downtrend continues, it is possible for bears to push the price below $2.
This downward movement occurs despite the U.S. Core PCE Price Index (excluding food and energy) dropping to an annual rate of 2.5% in April, its lowest level since March 2021. However, the Federal Reserve’s hawkish stance, warning of the potential impact of trade tariffs on recession risks, persists.
The correction has also triggered significant activity in the liquidation markets. As XRP dropped to $2.17, leveraged traders faced $30 million in liquidations, with nearly all from long positions losing $29.75 million, compared to just $384,000 in shorts.
Investors are also keeping a close eye on XRP-specific fundamentals, including the potential approval of a spot XRP ETF and the resolution of the SEC vs. Ripple case, which seems to be moving towards a settlement.
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