$XRP Price Analysis: Is a Trend Reversal Imminent?

XRP has recently experienced a decline, dropping 2% on the day and nearly 9% over the past week. This downturn has been influenced by ongoing legal uncertainties surrounding the Securities and Exchange Commission's lawsuit against Ripple and the $50 million settlement figure. Additionally, Bitcoin's ongoing consolidation may be contributing to indecisiveness among traders.

Technical Analysis: Key Levels to Watch

Current Price: $2.18

Key Support Level: $2.0350 (23.6% Fibonacci retracement)

Resistance Levels:

$2.5067 (50% Fibonacci retracement)

$2.8000

$3.00

$XRP is currently consolidating under the $2.36 level, which previously acted as key support. Technical indicators on the daily chart, specifically the RSI and MACD, support a bearish outlook for XRP. However, XRP is currently 7.33% above its key support at $2.0350, the 23.6% Fibonacci retracement of the decline from its 2025 peak of $3.4000 to the April low of $1.6134.

A 14% rally could see XRP test resistance at $2.5067, the 50% Fibonacci retracement of the drop from the 2025 peak. Conversely, a 7.33% decline could send XRP to collect liquidity at $2.0350. If XRP gathers momentum, a recovery is likely once it sweeps liquidity at the support level.


Weekly Outlook: Mixed Signals

The weekly price chart shows mixed signals. RSI is close to neutral, while MACD flashes red histogram bars. XRP could either extend consolidation or break out, depending on the catalysts. The Fair Value Gap (FVG) on the weekly price chart is a bullish one, between $2.1743 and $1.6300, meaning that once XRP collects liquidity here, it could attempt a recovery.

Conclusion

$XRP is at a critical juncture. While technical indicators suggest a potential trend reversal, market sentiment and external factors will play significant roles in determining its future direction. Investors should monitor key support and resistance levels, as well as developments in the regulatory landscape, to make informed decisions.