XRP has seen a sharp decline, falling below the critical $3 level, marking a potential shift in market sentiment. The cryptocurrency currently trades at approximately $2.77, underscoring its challenges in regaining upward momentum.
This drop highlights a loss of key support, which acts as resistance, creating a complex scenario for traders and investors.
Adding to the uncertainty, Ali, a market analyst, has noted a crucial development in XRP’s technical analysis. In a tweet, he pointed out that the Bollinger Bands on XRP’s daily chart are tightening. This “squeezing” pattern often signals an imminent and significant price move.
Key Support Levels Under the Microscope
The first important monitoring level is $2.62, aligning with XRP’s 50-day moving average. This level previously acted as a support zone during corrections. A rebound here could signal renewed buyer interest, but failure to hold this level may lead to further declines.
The next significant threshold is $2.03, which aligns with the 100-day moving average. This zone is considered a more robust support level, likely to attract buyers looking for a stable foundation. XRP could consolidate in this range before making its next move.
The final key level is $1.50, representing the 200-day moving average and is psychologically significant. A drop to this point would mark a complete retracement of XRP’s recent rally, potentially offering long-term investors an attractive entry point.
Market Awaits a Decisive Move
With the Bollinger Bands tightening, a significant price move appears on the horizon. A breakout above $3, supported by higher trading volume and renewed buying pressure, could reignite XRP’s bullish momentum. However, if bearish sentiment prevails, XRP might test the lower support levels outlined.
XRP remains in a precarious position, with its recent crash below $3 drawing significant attention. Investors and analysts closely observe key levels and technical indicators, such as the Bollinger Bands, for clues about the cryptocurrency’s next move.
This post first appeared on 36crypto.com News.
