The XRP market continues to exhibit volatility, with recent weakness despite breaking above a descending trendline that had been limiting upward movements since February. Following a retreat below important resistance levels, analysts are now cautioning that XRP might face a deeper pullback in the upcoming sessions.
Currently, XRP is struggling to maintain support at $2.10, slipping as low as $2.03. Analyst CasiTrades has issued a warning, suggesting that the recent breakout might be a false one. She highlights the potential risk of a liquidity sweep to the downside if open interest increases without a significant price movement, particularly if it surpasses 0.02% or higher.
According to CasiTrades, failure to sustain the $2.25 level could lead to a drop towards $2.01, $1.90, and even $1.55. While a move to these lower levels would be painful in the short term, it could provide the necessary momentum for XRP to finally break free from its long-standing range. CasiTrades anticipates that such a shakeout could pave the way for a strong Wave 3 breakout in the upcoming weeks.
Technical indicators support a bearish short-term outlook, with RSI and Stochastic indicators on the daily and 4-hour charts indicating oversold conditions. This suggests ongoing selling pressure before a potential rebound. The market is closely monitoring the $1.95–$1.88 range for signs of stabilization.
Furthermore, XRP’s price performance continues to be closely linked to Bitcoin and Ethereum. Given that both major cryptocurrencies are trading within narrow ranges and displaying signs of a possible pullback, altcoins like XRP are likely to follow suit.
Despite the elevated short-term risks, some analysts remain optimistic about XRP’s medium-term outlook. If the market can shake off the current bearish sentiment, XRP could recover towards $2.25–$2.35 initially, with more ambitious targets of $3 by the end of July if bullish momentum gains traction.
