XRP Tests Critical Support at $1 Amid Selling Pressure

XRP is currently testing the critical support level at $1, following a break below a multi-month descending trendline. This shift has turned previous support into resistance, highlighting the importance of the $1.35–$1.40 zone for traders.

Market Context

In recent weeks, XRP has experienced significant selling pressure, leading to a decline below a key descending trendline. This trendline had previously acted as support, but its breach suggests a shift in market sentiment. The broader market has also seen volatility, contributing to XRP's current challenges.

Key Levels

• Support: $1 is a critical support level that XRP is currently testing.
• Resistance: The $1.35–$1.40 zone now acts as resistance following the trendline breach.
• Critical zones: The area between $1 and $1.35 is crucial for determining future price action.

Indicators Snapshot

The recent price action has been accompanied by increased trading volume, suggesting heightened interest at these levels. The Relative Strength Index (RSI) indicates that XRP is approaching oversold conditions, which may suggest a potential for a short-term rebound if buying interest emerges.

Scenarios (Next 24–72h)

• Bullish scenario: If XRP can hold above the $1 support and break back above $1.35, it could signal a recovery towards the $1.40 resistance.
• Base case: If XRP remains between $1 and $1.35, it may consolidate as traders assess the next directional move.
• Bearish scenario: If XRP fails to hold the $1 support, further declines could occur, potentially targeting lower levels.

Risk Notes

This analysis is for educational purposes only and does not constitute financial advice. Market conditions can change rapidly. Always conduct your own research and manage risk appropriately.

Sources

• https://www.newsbtc.com/analysis/xrp/can-xrp-hold-above-1-token-tumbles-11-as-breakdown-fuels-crash-concerns/