XRP Drops 6% to $2.13, Falls Below Key Support Level

On March 30, the price of XRP experienced a significant decline, dropping approximately 6% to around $2.13. This decline caused the cryptocurrency to fall below its key 20-day Exponential Moving Average (EMA) support level, indicating a potential shift in market sentiment. The recent price movement of XRP has shown signs of short-term weakness, with a 6.65% drop over the last 24 hours. This decline can be attributed to various factors, including profit-taking, temporary market uncertainty, or reactions to broader market events. Despite this recent dip, the 3.90% decrease over the last 30 days is relatively modest compared to the sharper corrections seen in other cryptocurrencies.

Ask Aime: Why did XRP drop below its 20-day EMA?

Technical analysis provides valuable insights into the current state of XRP. On the 4-hour chart, the 50-period moving average has shown signs of a slight rebound, suggesting emerging buying interest despite the short-term drop. On the daily chart, XRP is trading near its 50-day moving average, which is currently acting as a dynamic support level. However, the 200-day moving average remains above the current price, indicating that the long-term trend is still somewhat bearish. A sustained move above the 200-day ma would be a crucial bullish signal, suggesting that a trend reversal could be in the making.

Recent price action reveals that XRP has been oscillating within a descending channel over the past several weeks. The upper boundary of this channel, located around $2.25–$2.30, now acts as resistance. A breakthrough above this resistance level on robust volume could signal the start of an upward trend. Conversely, if XRP fails to hold its support near the channel’s lower boundary (around $2.10–$2.15), it may trigger further downward pressure.

For traders, identifying critical support and resistance levels is essential. The primary support for XRP is around $2.10–$2.15. This level has historically acted as a floor during price corrections and is crucial for maintaining a stable price. If XRP can hold above this support, it would create a foundation for a potential rebound. Immediate resistance is observed in the $2.25–$2.30 range. A sustained break above this level, especially on high volume, could trigger a bullish rally, pushing XRP toward higher targets such as $2.40–$2.50 in the short term.

Based on the technical analysis and current market conditions, several potential scenarios for XRP’s price can be outlined. In a bullish scenario, if buying interest strengthens, XRP could break above the resistance zone of $2.25–$2.30 if renewed buying pressure comes in on strong volume. Positive catalysts such as favorable regulatory updates, increased institutional interest, or network enhancements that improve XRP’s utility in cross-border payments could drive a bullish reversal. Confirmation of a bullish move would come from an RSI rising above 60 and a bullish MACD crossover on the daily chart, along with sustained high trading volume during the breakout.

In a consolidation scenario, if market sentiment remains mixed, XRP may continue to consolidate within a range of $2.10 to $2.30. This suggests that buyers and sellers are in a state of equilibrium, with the market waiting for a decisive catalyst to determine the next direction. During consolidation, XRP is likely to hover near its current price. Investors may use this period to accumulate positions ahead of a breakout.

In a bearish scenario, if selling pressure dominates, XRP may fail to hold its support around $2.10–$2.15, leading to further declines. In this case, XRP might drop to the $2.00–$2.05 range or even lower if the downtrend accelerates. A falling RSI below 40 and a bearish MACD crossover on the daily chart would confirm that selling pressure is mounting. Increased selling pressure, particularly if accompanied by low trading volume, could drive the price down further, emphasizing the risks of short-term bearish momentum.

Investing in XRP, like all cryptocurrencies, involves inherent risks due to its volatile nature. It is crucial for investors to perform thorough research, stay updated on market developments, and consult with a financial advisor before making any investment decisions in the volatile cryptocurrency market.

Bitwise, an investment firm, recently released a report exploring potential price paths for XRP through the end of 2025. Their analysis suggests outcomes depend heavily on XRP’s adoption momentum, particularly for payments and within the broader digital asset tokenization market. In Bitwise’s bullish scenario, XRP could reach $4.48 by year-end 2025, assuming it captures even a small percentage of this expanding market. A steadier growth outlook in their analysis projects $3.90 for XRP, assuming consistent growth in related payment services. Conversely, bitwise stated a bearish scenario occurs if XRP fails to gain significant institutional backing, potentially seeing the price drop to $1.82 in that case.

Offering a contrasting, potentially more near-term bullish technical view, TradingView analyst “TehThomas” presented a different setup for XRP. He notes the asset currently trades within what appears to be an ascending channel pattern, often characterized by higher highs and higher lows indicative of an underlying uptrend. TehThomas highlights XRP’s price now sitting within the 0.618–0.65 Fibonacci retracement zone of a prior upward move. This area, technically known as the “Golden Pocket,” is historically considered a strong potential reversal or support zone by chart analysts. He also notes the price aligns with an “imbalance zone,” suggesting price might naturally revisit these levels before potentially resuming an upward trend.

If XRP successfully holds the current levels within this Golden Pocket zone as key support, TehThomas predicted it could rally approximately 20% toward the $2.80–$2.90 resistance range. Current daily indicators provide additional context. The Relative Strength Index (RSI) reads near 52, suggesting a relative balance between buyers and sellers, although its recent downward gradient hints at increasing sell-side pressure. XRP’s price also trades near the Bollinger Bands’ mid-line, often signaling a potential consolidation phase. Key levels defined by the bands suggest a break below support near $2.10 could risk a test of the lower band, while a convincing move above resistance near $2.36 is needed to trigger a stronger rally attempt.