Following a quick dump under $3 last week, XRP turned bearish again and faced a three-month support level with a head-and-shoulder pattern on the daily chart. A major breakdown is lurking around the corner.
As top altcoins continued to post significant losses in the past months, XRP remains in the bullish zone and keeps lagging in the face of the dip. However, it looks weak and ready for a crash as it approaches the key $2 level again, serving as critical support for three months.
Losing this support could trigger serious bleeding to a new multi-month low. But currently, the selling volume appears low as it lost 3% in the last 24 hours. A significant increase in volume should trigger a break.
Meanwhile, after a recent price twerk, the head-and-shoulder pattern remains intact on the daily chart. This pattern validates and suggests potential drops when looking for other indicators for a mid-term bearish.
Another bearish signal to consider is the daily volume indicator, which has been on a consistent decline since the price rallied above $3 late last year. While this suggests a steady outflow, we can expect a major price crash shortly. There’s hope for the bulls if they counter the current move.
XRP’s Key Level To Watch
The $2 support remains a key obstacle level for the bears. A successful crack there could dip the price to $1.77 and $1.53 in no time. However, the major target level for such a collapse is located at $1.
Right now, the $2.64 level is marked as immediate resistance. If the bulls counter the latest drop with a bounce above this resistance, the $2.99 and $3.4 levels are the next resistance to watch.
Key Resistance Levels: $2.64, $2.99, $3.4
Key Support Levels: $2, $1.77, $1.53
- Spot Price: $2.1
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.