Ripple’s XRP Analysis

Ripple’s XRP is currently down by more than 18% and is trading around the $2.30 level. The broader market sentiment has turned red after a brief rally, where Bitcoin hit $95k. According to analyst Josh of Crypto World, XRP is following Bitcoin and the overall stock market trends. After a short-term price pump, XRP experienced a pullback after briefly breaking above the resistance zone between $2.65 and $2.80. Now, the price is back below this level.

Key Support and Resistance Levels

The next important support zone for XRP lies between $2.25 and $2.30. If the price bounces here, a short-term recovery could occur. However, if it breaks below $2.25, further drops towards $2 or even the $1.95-$2.05 range are likely, making this zone critical for XRP in the near future.

Price Structure and Indicators

On a more positive note, there are signs of bullish price action. XRP has formed higher highs in both price and RSI (Relative Strength Index), suggesting a possible shift toward a more bullish market structure. This makes it less likely that the current bearish divergence will continue.

Influence of Bitcoin

If Bitcoin continues its sideways movement or further declines, XRP may mirror these actions. It’s likely that XRP will experience some consolidation in the short term before making a bigger move.

Short-Term Indicators and Overbought Conditions

XRP recently showed an oversold signal, which led to a short-term bounce. Currently, the RSI indicates overbought conditions, suggesting a pullback could be imminent. Historically, XRP has experienced price pullbacks after such signals, and this time might be no different. However, the RSI is now resetting to more neutral levels, indicating a possible pause in the current bearish price action.