Ripple’s XRP is facing increasing bearish pressure as the price drops 5%, breaking a crucial $2.50 support level. With market uncertainty growing, analysts predict a possible decline to $2.10 in the coming days.
Technical Analysis Signals More Downside
According to AMBCrypto’s technical analysis, XRP has turned bearish on the four-hour timeframe after breaking down from an ascending triangle pattern. This pattern breakdown is a significant signal that the cryptocurrency may continue its downward trajectory.
Currently, XRP is trading at $2.45, and if a four-hour candle closes below $2.50, the chances of a further 13% drop to $2.10 increase significantly. The Average Directional Index (ADX), currently at 20, suggests weak price momentum, further supporting the bearish outlook.
Increased Trading Volume – A Warning Sign?
Despite the price drop, XRP’s trading volume surged 70% in the last 24 hours. While high trading volume can indicate strong market activity, it is not necessarily a bullish signal. This could be attributed to increased liquidations, token accumulation, and panic selling.
On-Chain Metrics Indicate Mixed Sentiment
Data from Coinglass reveals that $13.65 million worth of XRP tokens flowed out of exchange wallets in the past 24 hours, indicating potential accumulation by long-term holders. However, this accumulation may not be strong enough to counteract the bearish momentum.
Liquidation Levels Pose Risks for Traders
Key liquidation levels show that XRP traders are heavily over-leveraged:
- If XRP drops below $2.40, approximately $35.50 million worth of long positions will be liquidated.
- If XRP rises to $2.55, over $40 million worth of short positions will be wiped out.
With bears currently dominating the market, XRP is at risk of a further decline unless market sentiment shifts in favor of buyers.
Conclusion: Will XRP Hit $2.10?
While long-term holders show confidence in XRP, the prevailing bearish sentiment and technical indicators suggest a potential dip to $2.10. Traders should monitor key support and resistance levels closely in the coming days.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile. Conduct your own research before making any investment decisions.
