The prices of $XRP dropped 4.08% in the last day, following most of the cryptocurrency market, after the US announced a possible 50% tariff on imported goods from the European Union (EU). Amid this market drop, popular market analyst CasiTrades stated that XRP is at risk of additional decline if a certain support level fails.
The $XRP must avoid a drop below $2.25 – $2.26. As Bitcoin prices hit a new all-time high last week, the $XRP followed suit, reaching up to $2.45 before experiencing a price rejection due to negative macroeconomic pressure caused by the new international tariffs from the US government. On the day, the price of XRP notably fell over 5%, from $2.45 to $2.33, before finding some stability and entering a sideways movement, as seen in the last few hours.
According to CasiTrades, the rejection of XRP is aligned with a Fibonacci extension of 1:1 of the corrective wave pattern C in Elliott Wave Theory, signaling the possible exhaustion of the previous relief rally seen earlier in the week. Notably, the analyst warns that the decline of XRP may lead to a retest of the 'main structural support' in the price zone of $2.25 – $2.26, which is aligned with the Fibonacci retracement level of 0.382. CasiTrades explains that Fib 0.382 represented a key technical price level over the past six months. Therefore, a price break below this level could trigger deeper corrections, forcing the price of XRP to drop to $1.55 – $1.90, a price movement that would eliminate all price gains recorded since the cryptocurrency market's bullish trend resumed in early April. However, if the support zone of $2.25 – $2.26 holds, such market resilience may trigger a new price rally to around $2.70 and beyond. After that, XRP is likely to return to the local peak of the current bull run at $3.84.
XRP Price Overview: At the time of writing, XRP continues to trade at $2.33 after a decline of 1.45% in the last week. However, the altcoin has risen 9.77% in the last month, reflecting that most new market participants are still in profit. In other positive news, Volatility Shares launched an exchange-traded fund (ETF) of XRP futures on May 22. It is a 1x fund, indicating that it would track the daily performance of XRP futures contracts without leverage. With a total market capitalization of $233.58 billion, XRP remains the 4th largest cryptocurrency and the third-largest altcoin in the market.
