Ripple’s XRP Struggles to Hold Ground: Can It Rebound or Is a Deeper Correction Coming?

The largest assets, Bitcoin (BTC) and Ethereum (ETH), are trading downside, with the overall crypto market cap settled at $3.12 trillion, after a spike of over 0.79%. The fear and greed index value, holding steady at 37, displays fear in the market. Among the altcoins, Ripple’s native token, XRP, has faced a plunge in price of over 2.21%. 

The altcoin has recorded its highest price at $2.08 in the early hours, and later, it dropped to a low of around $1.91, with the bearish shift in the market. At the time of writing, XRP trades within the $2.02 range, with its daily trading volume increasing by over 66.34%, resting at $5.11 billion. Consequently, a $21.63 million liquidation of XRP was observed in the market, as per Coinglass data. 

Moreover, the XRP price has surged by over 13.53% in the last thirty days. XRP hit its monthly high of $2.45 and moved to the current trading level. 

Will XRP Continue the Losses?

The four-hour technical analysis of XRP reports that the Moving Average Convergence Divergence (MACD) line and the signal line are settled below the zero line. This generally suggests a sturdy bearish momentum, which can lead to more downside correction. Besides, the Chaikin Money Flow (CMF) indicator found at -0.07 indicates that money is flowing out of the asset, with moderate selling pressure in the market.

In addition, the asset’s daily relative strength index (RSI) at 40.87 implies that the asset is in a neutral to slightly bearish zone. The weakened bullish momentum and a possible continuation of the downtrend may follow. XRP’s Bull Bear Power (BBP) value of -0.0369 signals a slight bearish momentum in the market. 

Assuming XRP’s current bearish momentum continues, it could experience a pullback and test the support level below the $1.96 range. Carrying further downside risks, the asset’s crucial support level might form at $1.90, potentially applying more pressure on its price, triggering the death cross to unfold. 

In case the bullish momentum re-enters, XRP could climb and test its crucial resistance at the $2.07 range. If the altcoin holds strong above this level, the price may find its subsequent resistance within the $2.12. An extended upside correction might initiate the emergence of a golden cross.

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