Crypto Quill

XRP, the fourth-largest cryptocurrency by market cap, is experiencing sharp price swings. Currently trading at $2.36 with a market cap of $136 billion, the token has seen an 11% drop in the past 24 hours. Despite this short-term dip, its weekly performance remains positive, up by 6.14%. The question now is whether XRP can maintain its position above the $2 psychological level or if the selling pressure will push it lower.

A Wild 24 Hours for XRP

The past day has been a rollercoaster for XRP traders. After touching a high near $3 over the weekend, the cryptocurrency faced a sharp correction, falling by nearly 19% on Monday. This intense price action has brought XRP back to a critical support zone.

A look at the 24-hour low shows that XRP dropped to $2.21 before bouncing slightly. This suggests that buyers are still active at lower levels, but the market remains unpredictable.

Technical Indicators Point to Key Levels

From a technical perspective, XRP’s daily chart tells an interesting story. Sunday’s 35% surge was met with strong resistance, and the failure to hold above $3 triggered the current retracement.

Some key technical signals:

• Support at $2.22: The 38.2% Fibonacci retracement level is holding up as strong support, aligning with the 100-day Exponential Moving Average (EMA).
• Bearish Piercing Candle: Monday’s price action formed a bearish piercing pattern, hinting at continued weakness if buyers fail to step in.
• Lower Price Rejection: Despite the dip, the market has shown rejection of lower prices, which could mean bulls are defending this range aggressively.

Can XRP Hold Above $2?

The $2 mark is more than just a number—it’s a psychological level for traders and a key area of interest for technical analysis. If XRP falls below this level, we could see a deeper correction.

Here’s what to watch:

• If buying pressure increases, XRP could attempt another move towards $2.50 or even $2.80 in the short term.
• A break below $2 could send XRP tumbling toward $1.80 or lower, depending on overall market sentiment.
• Broader market conditions, including Bitcoin’s price action, could play a significant role in XRP’s next move.

The Broader Crypto Market Factor

XRP isn’t moving in isolation. The entire crypto market has seen a shift in sentiment, with Bitcoin and Ethereum also facing corrections. A rebound in the broader market could help XRP recover, while continued bearish pressure could drag it down further.

One thing is certain—volatility isn’t going anywhere. Traders should be prepared for rapid price swings as XRP navigates this uncertain territory.