XRP Faces Critical Moment as Long-Term Support Weakens

XRP is at a pivotal stage as it breaks through a crucial long-term support level that has held for over 400 days. After hovering around the $2 mark, this recent dip below the 200-day moving average indicates increasing pressure, placing the cryptocurrency in a high-stakes environment where its next action could significantly shape its short-term future.

Key Takeaways

XRP is experiencing significant pressure as it breaks long-term support for the first time in over 400 days.
The price is consolidating in a tight range below $2, indicating potential for a decisive move soon.
The recent breach of the 200-day moving average poses risks to market sentiment.
Current support levels are identified at $1.45, $1.10, and $0.69 in case of further declines.
A former resistance level has flipped to act as support, giving buyers a chance to defend XRP's value.

XRP

Price Movement Below $2 as Volatility Tightens

In a post on X, Umair Crypto highlighted that XRP has encountered strong resistance at the psychological $2 level, pushing the price into a narrow trading range between $1.85 and $1.88. Typically, such market behavior precedes a sharp movement, indicating that XRP may be approaching an important breakout or breakdown point.

On the daily chart, XRP still demonstrates some resilience despite the challenges above. Buyers have successfully defended nearby support levels, thwarting a significant breakdown in its structure. This protective price action keeps the overall bullish outlook intact, provided that momentum picks up and XRP can reclaim higher levels confirmed by stronger trading volume.

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Source: Chart from Umair Crypto on X

However, a broader analysis using the 3-day chart suggests a more cautious approach. The current support area closely coincides with the 200-day simple moving average. XRP's latest close beneath this moving average marks a significant shift, as it is the first occurrence in over 400 days. If not addressed promptly, this could negatively impact market sentiment.

This scenario puts XRP at a vital juncture. The chart reveals a relatively sparse historical structure after the explosive rally in November 2024 that surged the price from $0.50 to $3. With fewer well-established demand zones beneath, any heightened selling pressure could lead to rapid declines.

Umair Crypto indicated potential support levels at $1.45, $1.10, and $0.69 as possible targets if a confirmed breakdown takes place. Market watchers remain focused on the upcoming trading sessions, particularly following Ripple's recent $1 billion token unlock, which introduces more supply and adds another layer of strain to an already fragile market setup.

Former Resistance Now Serves as Support for XRP

In a monthly update on XRP, crypto analyst Chad noted that the asset is currently above a key level that used to act as resistance but has now turned into support. This transition suggests that buyers are still active in defending this price level, contributing to a generally positive outlook, despite some recent hesitations in price movement.

A noticeable double-top pattern is visible on the chart, but Chad believes it does not need to fully materialize as long as XRP maintains its position above the 0.786 logarithmic Fibonacci level.

Overall, XRP appears to be in a consolidation phase, rather than making a decisive move. The current price action is confined within the 0.786 to 0.886 log Fibonacci range, indicating a balancing period as the market awaits a clearer catalyst for direction.

XRP
XRP trading at $1.89 on the 1D chart | Source: XRPUSDT on Tradingview.com