Investors have been uneasy about the price movements of cryptocurrencies in the last week, especially for XRP.
After it reached the day’s highest point of $2.46, the crypto descended about 6% down to $2.30.
This has been linked to the general market instability. Most of the altcoins have not been able to hold their ground.
The fluctuation in prices shown by the movement of XRP price. Its intraday high point is indicative of the volatility of cryptocurrencies.
This drop wasn’t the only one; other major cryptocurrencies followed it after the market took a plunge.
Potential for Further Decline to $2 Support
Moreover, a popular market analyst, Nebraskangooner, has made predictions on what might be the support levels for XRP.
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In a tweet on the 7th of January, he predicted that this fourth-largest crypto asset would continue on a downward spiral by 12% to hit a crucial demand level.
He predicted that Ripple (XRP) could pull back to the $2 support level by losing another 12%. This forecast is because XRP has been trapped into a falling wedge pattern, which is usually a bearish pattern.
If XRP fails to hold above the critical support, a deeper correction could be seen in the days to come.
XRP Price: Key Resistance and Potential Downside Risks
The price of XRP stands at major resistance at $2.65. Above this important level, it would be considerably easy to push up the prices. Beyond this the Ripple price would maintain a price rally.
If the $2 support fails to hold, XRP could drop to $1.64, as some analysts have predicted. This potential downside risk is why the $2 support level represents such a pivotal variable for XRP’s short-term direction.
In just the last five days, XRP hit an intra-month high of $2.49; however, it has declined more than 7% since then.
More so, the token will go up to $3.55 and $3.77 if it is to surge beyond the $2.65 level.
Nevertheless, if XRP keeps in the falling wedge pattern, it may lead to a decline to $1.64 and $1.37 in case of breaking the bottom range.
Expectations for the week to come will be focused on whether XRP will now be able to recover from the recent lows or continue its free fall.
The fate of the cryptocurrency therefore rests with how it behaves at the critical support and resistance zones.
The support could recover if the crypto defends the $2 effectively; otherwise, a breakdown may be followed by a rather sharper decline.
Meanwhile, at press time, XRP price has recovered from an intraday low of $2.2622 to $2.324, showcasing a slight rebound in market activity.
