$XRP , the fourth-largest cryptocurrency by market capitalization, has experienced a significant surge in trading activity, with its according to CoinMarketCap. The heightened activity comes amid broader market volatility, contributing to increased investor interest in XRP.

Market Conditions and Influencing Factors

The cryptocurrency market has been under pressure in recent sessions, with digital assets extending Friday’s losses into early Saturday trading. The downturn follows the release of the February Personal Consumption Expenditures (PCE) inflation report, which indicated a 2.5% year-on-year increase in the price index and a core inflation rate of 2.8%, exceeding market expectations.

XRP has been impacted by the broader sell-off, extending its decline since the beginning of the week.

XRP Approaches Key Price Level

Despite recent declines, XRP is nearing the crucial $2 mark after recording a 14% drop over the past week. This level is seen as a pivotal point that could determine the cryptocurrency’s next phase of price movement.

Technical analysts have identified a classic head-and-shoulders pattern on XRP’s price chart, a bearish indicator that, if confirmed, could suggest a potential 55% price drop. The key support level to watch is $1.90, while a move above $3.00 would invalidate the bearish outlook.

At the time of writing, XRP is down 6.54% in the last 24 hours, trading at $2.06. The cryptocurrency has been in decline since March 25 and is on track for a fifth consecutive day of losses if current trends persist. The intraday low at press time stands at $2.06.

Veteran trader Peter Brandt weighed in on the technical setup, stating:

"Your favorite Beanie Baby/Pet Rock crypto displays a classic complex head-and-shoulders top. This could become bullish if $3.00 is exceeded; otherwise, the implication is a decline to $1.07. If you have an issue with this, take it up with Magee and Edwards."

Key Levels to Watch

For bullish momentum to return, XRP may need to reclaim the 50-day simple moving average (SMA) at $2.41. If declines persist, support is expected at $1.779 or the 200-day SMA.

As the market continues to react to macroeconomic developments, investors will be closely monitoring XRP’s price movements and key technical levels for signs of a potential reversal or further downside.#Xrp🔥🔥