The cryptocurrency market continues to exhibit volatility, with XRP displaying signs of weakness despite recently surpassing a descending trendline that had been constraining every rally since February. However, after slipping below key resistance levels, analysts are cautioning that XRP may be vulnerable to a deeper pullback in the upcoming sessions.
As of now, XRP is struggling to maintain support around $2.10, with a dip to as low as $2.03. Analyst CasiTrades has issued a warning, suggesting that although XRP briefly reclaimed its breakout level, the move could potentially be a false breakout. She further mentioned that a surge in open interest without a substantial price movement, particularly if it exceeds 0.02% or higher, could indicate a high likelihood of a liquidity sweep to the downside.
“If we are unable to sustain $2.25, it opens up the possibility of $2.01, $1.90, and even $1.55 coming into play,” CasiTrades explained. While a drop to these lower levels may be painful in the short term, it could generate the necessary momentum for XRP to finally break free from its multi-year range. This shakeout could potentially pave the way for a significant Wave 3 breakout in the weeks ahead.
Technical indicators are aligning with the bearish short-term outlook, with RSI and Stochastic indicators on both daily and 4-hour charts signaling oversold conditions, suggesting ongoing selling pressure before a potential rebound. The market is closely monitoring the $1.95–$1.88 zone for indications of stabilization.
Adding to the uncertainty, XRP’s price movements are closely linked to those of Bitcoin and Ethereum. As these major cryptocurrencies trade within narrow ranges and indicate a potential pullback, altcoins like XRP are anticipated to reflect similar behavior.
Despite the current elevated short-term risks, some analysts remain optimistic about XRP’s medium-term prospects. If the market manages to shake off the prevailing bearish sentiment, XRP could see a recovery towards $2.25–$2.35 initially, with more ambitious targets of $3 by the end of July if bullish momentum gains traction.
In conclusion, while XRP faces immediate challenges, there is potential for a rebound and significant price movement if certain key levels are maintained and bullish momentum emerges in the coming weeks. Stay tuned for further updates on XRP’s price action and market trends.