Is XRP’s Price in Jeopardy as Momentum Weakens Around $1.80?

XRP is currently trading close to the crucial $1.80 support level, and as bullish momentum diminishes, the likelihood of a price drop increases, raising concerns over a potential capitulation move into zones with lower liquidity.

Key Takeaways:

XRP struggles to maintain bullish momentum as it hovers near the $1.80 support level.
The price action reflects a bearish market trend, with sellers reasserting control after each attempt at recovery.
A crucial test of the $1.80 support level could determine whether XRP stabilizes or accelerates downward.
A closing price below $1.80 increases the risk of rapid declines, with a significant support area around $1.37.

XRP's current performance shows increasing signs of vulnerability as its price action fails to establish consistent bullish momentum near the critical $1.80 support level. Despite several attempts to recover in the short term, the overall technical setup appears bearish, and buying pressure seems to be fading.

With sellers consistently taking control following each brief rally, XRP now faces a pivotal test that may determine its immediate price trajectory.

XRP price capitulation risk increases as bull volume fades.

XRP Price Key Technical Observations

Is XRP price at risk as momentum weakens near $1.80? - 1
XRPUSDT (1D) Chart, Source: TradingView

Recent price movements of XRP indicate a market struggling to reverse a downward trend. While there have been sporadic bullish trends visible in lower time frames, these have often been countered by equal or stronger selling pressure. This trend suggests a lack of confidence among buyers, with sellers remaining dominant at significant resistance levels.

From a market structure viewpoint, XRP has been forming lower highs, characteristic of a bearish trend. Each price rally has not reached previous resistance levels, underscoring the notion that current upswings are corrective movements rather than vigorous advances. Without a shift in this trend, the odds of a sustained upward move appear low.

At present, the $1.80 area represents a crucial high-time-frame support level. The price has consistently gravitated towards this point, establishing it as a fierce battleground between buyers and sellers. It is vital for XRP to maintain this region if it hopes to move towards higher resistance levels. However, there has yet to be any confirmation of the strength needed to initiate such a shift.

Volume analysis also points to caution. Strong market reversals typically require an increase in bullish volume to affirm demand. In the case of XRP, there has been a noticeable absence of such bullish volume. Even during brief rallies, volume has not seen significant growth, indicating a persistent lack of buying interest. This absence of market participation raises the chances of support failing rather than holding firm.

If XRP breaks below the $1.80 mark on a closing basis, the risk of downside movement significantly escalates. Should it drop below this level, structural support becomes limited, making the price susceptible to a swift decline. The next major focus area is near the $1.37 swing low, where previously established liquidity may be concentrated. Such situations often evolve rapidly, as stop-loss orders get triggered and sellers take advantage, potentially resulting in a classic capitulation scenario.

From the perspective of price action, the inability of the market to maintain higher prices is troubling. Instead of consolidating and building a stable base above support, XRP appears to drift lower after each failed rebound. This pattern indicates that demand is more reactive rather than proactive, which often precedes further declines, even as discussions grow regarding whether XRP might be undervalued. More investors are beginning to explore IO DeFi alternatives.

Nonetheless, the $1.80 mark remains the last significant defense for bulls in the near term. If this level can be strongly defended, coupled with an increase in bullish volume, it may still provide an opportunity for a rebound towards the next higher resistance level. However, until such confirmation is evident, the risk of decline remains high.

What to Anticipate in the Upcoming Price Action

As XRP continues trading around the $1.80 level without substantial volume support, the risk of a breakdown remains significant. A decisive move below this crucial point could instigate a capitulation-like drop towards $1.37. For any bullish outlook to materialize, XRP must convincingly hold above $1.80 and break out of the current bearish market structure, while also experiencing a rise in volume—signals that have yet to materialize.