- XRP’s price action is focused on $2.20 support, which could define its next move toward higher resistance levels.
- Breaking $2.70 hurdles could drive bullish momentum, while falling below $2.20 may push XRP closer to $1.96.
- Traders closely watch XRP’s settling between $2.20 and $2.70 for potential trading opportunities in the volatile crypto economy.
The token is trading at $2.25 after recovering from recent declines, maintaining its position above the pivotal $2.20 support level. Analyst has identified this zone as a battleground that could dictate the digital asset’s next major move.
Source: Ali Charts
If it holds above $2.20, it may build up before attempting another climb toward the $2.70 resistance level. However, a breakdown below $2.20 could trigger a decline toward $1.96, signaling a bearish shift. Recent price patterns and technical indicators underscore the importance of these thresholds.
The trading chart, sourced from Binance’s XRP/USDT perpetual contract, reveals significant volatility within a $1.96 to $2.70 range. Multiple sell signals appeared near $2.70, halting previous bullish momentum and leading to pullbacks. Conversely, buy signals emerged at $2.20, emphasizing its importance as a key support zone for traders.
Key Resistance at $2.70 Remains Unbroken
The $2.70 resistance has proven resilient, rejecting XRP’s advances multiple times in recent weeks. Despite several attempts, bullish efforts have failed to breach this barrier. Each rejection triggered noticeable corrections, highlighting the level’s significance.
Ali Martinez, an experienced market analyst, believes breaking $2.70 could signal a bullish reversal. However, failure to reclaim this resistance might keep XRP stuck in a consolidation phase. Traders are closely watching whether market momentum supports another retest of this critical level.
Potential Downside Risks Below $2.20
While $2.20 serves as strong support, its breakdown could invite bearish pressure. If sellers push XRP below this level, the cryptocurrency may slide toward $1.96. This move would represent a substantial loss for traders holding long positions. Martinez stresses that maintaining $2.20 is crucial to avoid further downside risks.
The next few days are pivotal for the token as traders assess its ability to hold key levels. Additionally, trading volumes and overall market sentiment will play roles in determining price direction. A successful consolidation above $2.20 could provide the momentum needed to challenge $2.70 once again.
Crypto News Land, also abbreviated as “CNL”, is an independent media entity – we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
