XRP’s recent inclusion in the crypto strategic reserve has certainly created a buzz in the market. The move is being seen as a significant step that could potentially strengthen the platform. Following this development, the price of XRP witnessed a massive upswing, breaking through key resistance levels at $2.27 and $2.89. However, the bears managed to gain control around the $3 mark, leading to a sharp decline of over 20% after the confirmation of tariffs on Canada & Mexico.
At present, the bulls are putting up a fight to push the price above the previous day’s close, but the bears are exerting strong pressure, keeping XRP below the $2.35 mark. The big question now is what lies ahead for XRP – will it lose the crucial support at $2 or make a comeback to reclaim lost dominance and surpass immediate resistance levels?
Despite initially breaking above lower highs and lows, the recent rejection has caused XRP to fall back into the same pattern. The bears seem to have a firm grip on the market, signaling bearish trends for the cryptocurrency. It is anticipated that entering the demand zone will attract more liquidity, essential for pushing the price beyond $2.8. However, with the technical indicators turning bearish, lower target zones between $2 and $1.96 have now come into play.
Looking at the daily chart of XRP, it is evident that the bulls are defending the local support at $2.272. However, a broader perspective reveals that the bears are gearing up for a major price movement. The price has already touched the lower bands of the Gaussian channel, which has turned bearish. A drop below this range could lead to further downward movement. Additionally, the MACD is on the verge of a bearish crossover after a brief bullish flip.
In light of these factors, XRP’s price is currently under significant bearish pressure and could potentially drop to $2 or even lower levels. On the flip side, a break above $2.5 might delay the bearish scenario, while a surge past $2.8 could negate it altogether. The recent news of the SEC dropping investigations and lawsuits against several crypto platforms has sparked speculation of a possible resolution to the ongoing lawsuit involving XRP.
Despite the optimism surrounding a potential settlement, analysts and XRP proponents believe that it may still take a few more months to reach a final resolution. Until then, the price of XRP is expected to maintain a slow yet steady rally.