XRP price falls 27% below critical support level: Possible crash ahead?
XRP has experienced a significant price drop over the past week, falling by 27% from $3.07 to $2.23. This decline is attributed to a broader downtrend in the cryptocurrency market, triggered by President Trump’s recent tariffs on Canada, Mexico, and China, leading to a sell-off in riskier assets.
On February 2, 2025, XRP’s price ranged between $2.57 and $2.61, with a market capitalization exceeding $150 billion and a daily trading volume of $12.19 billion. However, the cryptocurrency saw intraday price swings between $2.52 and $2.95, indicating high volatility due to fluctuating supply and demand dynamics.
Analyzing XRP’s price action reveals a bearish trend, with attempts to rally failing to gain momentum. Resistance is observed at $2.75, while support is seen at $2.50. If XRP fails to break through resistance, it may head towards a Fibonacci extension target of $2.40. Indicators like the relative strength index (RSI) and moving average convergence divergence (MACD) confirm the bearish outlook, suggesting further declines if selling pressure persists.
The four-hour chart paints a similar picture, with XRP struggling to surpass critical moving averages, signaling continued downward pressure. The $2.50 support level is crucial, and a breach could lead to a further decline to $2.40. Resistance at the 38.2% Fibonacci retracement level of $3.05 presents a significant barrier to overcome for any potential recovery.
A daily chart analysis further emphasizes the bearish sentiment, with XRP facing resistance from key moving averages. A close below $2.50 could trigger a descent towards the 100-day and 200-day support levels at $2.14 and $1.59, respectively. However, a breakout above $2.75 may indicate a bullish reversal if accompanied by strong demand.
Various oscillators provide mixed signals, with the RSI nearing oversold levels, while the Stochastic score and commodity channel index reflect indecision. Moving averages across different timeframes indicate a bearish sentiment, with only the 100-day and 200-day averages suggesting stability in the longer term.
The recent price decline in XRP is part of a broader trend in the cryptocurrency market, driven by uncertainty surrounding the impact of Trump’s tariffs. Despite current corrections, XRP has shown significant volatility in its yearly performance compared to traditional assets like the S&P 500. Investors are closely watching regulatory developments, particularly the SEC’s decision on Ripple’s ETF approval, as potential catalysts for future price movements.
In conclusion, XRP’s price decline underscores the volatile nature of the cryptocurrency market, influenced by external factors and investor sentiment. Traders are advised to monitor key support and resistance levels for potential trading opportunities amidst the ongoing market turbulence.
