XRP dropped to $1.50 on Wednesday after a strong continuation of its bearish pattern pushed the cryptocurrency to a vital higher-timeframe demand zone. The token declined after a clean breakdown of multiple support levels, indicating a strong downtrend as investors await a reaction to key support.
The daily chart is showing lower lows and highs, indicating that the selling pressure continues in the market. Cryptocurrency is nearing the $1.50 mark, which is the last significant buyers’ base before a potential deeper decline.
Source: TradingView
New Supply Zones Limit XRP Recovery
Several previous demand areas have now become supply areas. These include the newly formed supply at the reclaimed $2.00-$2.20 price range, which continues to cap all the upside movements.
According to the analysts, any movement toward this area is considered a correction unless the asset is able to close above it.
As of press time, XRP is trading at $1.51, down by 2.81% in the past day, according to CoinMarketCap data. The trading volume has risen by 35.91% to $4.09 billion. Over the past week, the token price has declined by 17.5%.
Source: CoinMarketCap
XRP Support and Breakout Levels
Crypto analyst BitGuru highlighted that XRP is bouncing from the $1.55-$1.60 demand zone. He said buyers defended this area during the previous downtrend. He added that support remains at $1.55, while resistance sits at $1.93, $2.20, and $2.65.
Source: X
Also Read: XRP Slides to $1.54 Despite Ripple’s Landmark EU License: $1.30 or $2 Next?
In addition, another analyst, Maxi, mentioned that XRP must break out from its bear channel to indicate a real change in trends.
He said that recent positive movements for cryptocurrency are just relief rallies and are not enough to indicate a reversal. A confirmation would be seen if the coin is able to close above the $2.20 level.
Source: X
Volume Surges as Open Interest Declines
CoinGlass data shows that the volume increased by 60.22% to $6.82 billion, while the open interest reduced by 5.38% to $2.64 billion. The token OI-Weighted Funding Rate is at 0.0073%.
Source: CoinGlass
Cryptocurrency currently finds itself at a critical point in its market structure. The upcoming price action will dictate whether the buyers can hold the level or if the bears can assert further dominance. Analysts are monitoring the levels that dictate the next major movement.
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