XRP Market Analysis

XRP is trading at around $2.15, but volatility indicators suggest a potential drop to the lower end of its recent range, posing risks for holders hoping for recovery.

The chart reveals a clear dip below the mid-line of the Bollinger Bands, currently at $2.32, a crucial support and resistance pivot. XRP’s latest weekly close below this level has shifted the risk balance, raising concerns.

As it trends downward, the lower band near $1.85 becomes significant, an area with little buying pressure in recent months. XRP hasn’t dipped below $1.85 since April, and historical tests of this lower band often resulted in quick recoveries, but guarantees are absent this time.

Currently, the market atmosphere is calmer compared to December-February’s volatile rally characterized by robust buyer activity.

Bears Dominate

The upper band now stands at $2.79, and with the mid-line’s diminishing relevance as a support level, market momentum appears to favor sellers. This trend keeps traders who aren’t long from entering the market.

At present, the $2 mark seems more like a psychological barrier. However, current candlestick structures indicate a potential retest of $1.85 could occur within the next one or two weekly closes.

Unless bulls intervene promptly and reclaim $2.32 decisively, XRP risks a gradual decline to the lower Bollinger Band, with a drop below $2 serving as a critical tipping point. The countdown for change may have begun.