The price of XRP is heading towards the critical support that drops below $2.
Recently, the price of XRP has refrained from showing massive movements with the potential to march towards higher targets. Meanwhile, the declining strength of the bulls may raise some concerns about the upcoming fundamental action. The price has been moving quietly, down by 5.34% since the beginning of the week after losing a similar margin over the weekend. However, the bears have had a tight grip on the rally, indicating that the support at the two-dollar price point could be broken in the coming days. The price of XRP is in a short-term bearish pattern as it heads towards the critical support area around $2.04. A drop beneath the range is expected to lead to further declines. However, breaking the range could pose some challenges, as the bulls have captured the range and prevented it from being sold off below the range. Nevertheless, the volatility of the token has decreased significantly, indicating that the price may remain consolidated for a while before the next price action begins. The daily chart of XRP price indicates that the token is trading at a critical support at the 200-day MA at $2.07. Although the token has led to a recovery, the bullish divergence has not been validated, which could occur once the price rises above the Bollinger Bands averages. These bands run almost parallel to each other, hinting at a decrease in volatility as the bulls and bears failed to exert pressure. Meanwhile, the RSI and MACD hint towards a bearish continuation, which may raise some concerns. The MACD, which has just risen into the positive range, has formed a bearish crossover and is returning to the negative range. Moreover, the relative strength index has maintained a sharp downward trend and has dropped below the average range. This indicates a significant decline in the strength of the rally that may force the price to remain within a consolidated range. Therefore, it is believed that the price of XRP will drop below the downward trend line for a while, which may attract buying volume, but a recovery to $2.5 still heavily depends on induced volume. Thus, the buying area for the XRP price could be around $1.85, which is a strong support and a potential reversal area, leading to an entry. A confirmed bounce from the range between $1.85 and $1.90 could target $2.95 after surpassing $2.5 and then at $3.39 and $3.87.
