XRP price collapses: Is the $2 mark on the brink?

XRP price collapses: Is the $2 mark on the brink?

Ripple’s cryptocurrency XRP has reached a critical point by falling below its short-term ascending trend line. This indicates a risky phase for the digital asset. Currently, XRP is trading at around $2.40, down nearly 5% for the day. This negative development is a sign of a renewed takeover by bearish forces that could potentially push the price towards the $2.00 support level or even below. [U.today] reports that the recent trendline breakdown invalidates the recovery pattern that emerged after the October crash.

What is particularly concerning is the fact that there are no longer any solid support areas between the current price and the support at $2.00. The moving averages indicate a possible formation of a so-called “death cross,” which is another bearish signal. Additionally, the Relative Strength Index (RSI) is close to 41, indicating growing weakness. Trading turnover is subdued, indicating low buyer activity.

Risks and forecasts

Analysts warn that as selling pressure increases, XRP could fall into the $2.10 to $2.00 range, where psychological support could provide temporary relief. However, there are no historical buy zones below $2.00, further exacerbating the situation for XRP. The price trend could also decline further if the cryptocurrency fails to recover and hold above the $2.55 mark. Stronger selling pressure is also possible if Bitcoin volatility increases or market sentiment deteriorates.

Overall, the current market situation for XRP is extremely tense. Many investors are following the development with concern as the situation could worsen, which would have a negative impact on the price. The overall valuation suggests that XRP could come under pressure in the coming days.