Ripple (XRP) Faces Bearish Pressure Amid Market Uncertainty
The cryptocurrency market instability tends to push XRP tokens into negative trends after their recent success. At the present moment the asset has lost 5% in value by breaking through its ongoing support line which warns of a major price drop.
The four-hour XRP chart shows a bearish trade pattern because the asset dropped below an ongoing upward triangle shape. When the asset dropped below $2.50 support its continuation towards lower prices became more probable. The loss of parallel support and triangle pattern marks a possible upcoming major price drop in XRP.
Key Resistance and Support Levels to Watch
Market indicators show another period of potential price decrease. As the current four-hour candle closes under $2.50 it creates a strong possibility of a 13% drop to $2.10 over the following days. The Average Directional Index reading of 20 shows weak market trends which adds to the possibility of price decreasing more.
XRP maintains a trading price at $2.45 but recorded over 5% decreases during the last day. More traders join market transactions because trading volume jumped 70% during this phase. Although increased trading volume shows rising market focus it does not mean purchases are overwhelming sales because both buying and selling led to its rise.
Long-term holders of XRP are buying more coins according to Coinglass on-chain reports despite the present market downtrend. Point-to-point trading data reveals XRP tokens left the market by $13.65 million last day. Investors who accumulate XRP will support the price by creating buying activity.
Market participants generally believe that more buying alone cannot produce a powerful market rise. Without long-term holder participation the market will face next potential takeover points at $2.40 and $2.55. Data from Coinglass shows traders used large amounts of capital to make buys or sell orders in this area.
When negative market sentiments persist with contract sizes at $2.40 XRP the system needs to liquidate positions worth $35.5 million. When market attitude changes and XRP rises to $2.55 traders who bet against the token will lose more than $40 million worth of positions. The bearish market control shows in current prices that lowers XRP”s value in upcoming market periods.
