Ripple’s XRP is currently trading at $2.22, down by more than six percent. The price is at a critical juncture, having retraced most of the gains from the past week. The entire top 10 cryptocurrency market is in the red, with Solana and Dogecoin experiencing significant losses.
Experts are suggesting that XRP could be undergoing a larger correction following a strong uptrend earlier this month. The price might be consolidating, either as part of a corrective pattern or a prolonged sideways movement.
Potential Scenarios, Key Resistance and Support Levels
Resistance Zone
The immediate resistance for XRP is between $2.30 and $2.53. If the price reaches this range, it could face selling pressure and potentially reverse downwards. Traders need to exercise caution near this area.
Critical Support Level
The crucial support level to monitor is $1.96, which was a previous low in December. A break below this level could trigger further selling, potentially pushing the price towards a range of $1.39 to $1.80.
Consolidation Phase
XRP might be in a consolidation phase, moving sideways within a defined range. This could indicate a correction after the recent rally. If XRP holds above $1.96, it could eventually break higher and test the resistance zone between $2.30 and $2.53.
Downside Risk
If XRP drops below the $1.96 support level, it could enter a deeper correction, potentially moving towards the lower support zone of $1.39 to $1.80. This level is critical for monitoring any potential reversal.
