XRP Plummets 31% This Month: What Lies Ahead?
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XRP Plummets 31% This Month: What Lies Ahead?

A deep dive into XRP's recent price movements following a significant downturn.

Ripple’s XRP has entered a new phase, moving beyond a corrective trading pattern. The latest trading behavior highlights a significant liquidity-driven unwind, with previous price reaction zones failing to maintain their support, indicating the asset is now exploring deeper levels of demand with limited structural support overhead.

XRP Price Analysis: Daily Overview

On the daily chart, XRP has broken below its most recent significant low of $1.20, demonstrating a structural decline rather than a mere fluctuation. This sell-off triggered a rapid and impulsive market response, suggesting more of a compelled action than a deliberate sell-off.

Multiple previously recognized demand areas have been breached with minimal resistance, suggesting that the buy-side liquidity there has been depleted. Currently, the reaction at the larger demand zone near the $1.00 mark is crucial, as it represents one of the last high-timeframe areas with potential untapped demand.

However, the absence of substantial price stability indicates that sellers maintain control. Any recovery will need time to be validated rather than just reacting once.

From the daily point of view, XRP is prone to further declines as long as it trades beneath former reaction levels that now act as resistance.

XRP/USDT 4-Hour Trends

Examining the 4-hour timeframe shows a more pronounced influx of selling activity, with prices nearing the $1.00 threshold. The latest impulsive drop was followed by a slight recovery, pushing the asset into an internal supply zone around the $1.50 mark.

These identified supply zones correlate with previous consolidation areas. They now present barriers where any short-term rebounds are likely to encounter renewed sell-side pressure. As long as prices stay below these points, upward movements should be perceived as adjustments rather than the beginning of a price reversal.

Structurally, the market is still prioritizing liquidity on the downside. Without a decisive break from the recent lower-highs pattern, the 4-hour trend remains distinctly bearish.

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