Could a Drop Beneath $2.72 Signal Trouble for Ripple's XRP?
Ripple's XRP is under scrutiny as it tests critical support levels, with analysts warning of potential declines.
XRP is currently under selling pressure as it nears a crucial support level at $2.72. The token is trading at $2.85, reflecting a nearly 5% drop in the last 24 hours. This situation has arisen following a rejection from key resistance levels that have limited recent upward movements.
Traders Watching the $2.72 Support Level
Crypto analyst Ali Martinez shared a chart illustrating XRP’s movement within a descending triangle, a pattern characterized by a stable lower support and decreasing highs, often indicating potential price squeezes and breakout points as the pattern forms. The price is precariously positioned above this support level, and if it dips to $2.72, it would be another test of this pivotal zone. A strong buyer crossover could send XRP towards $3, whereas a failure to hold could lead to lower levels around $2.22.
Peter Brandt Flags Breakdown Trigger
Market expert Peter Brandt has posted comparisons of XRP’s current configuration with a similar historical pattern from 1946, where the earlier setup reflected a breakdown after earlier unsuccessful ascents. He noted, “ONLY IF it closes below 2.69 (then I’ll be a hater), then it should drop to 2.22.”
In XRP’s scenario, if it closes beneath $2.68743, this would solidify the breakdown forecast and potentially push prices towards $2.22.
Source: Peter Brandt/X
In 4-hour charts, XRP persists near the lower Bollinger Band, indicating continuous selling pressure. The mid-band sitting around $2.96 now acts as resistance with prices failing to break back above this threshold.
Market Sentiment and News
As noted recently, XRP is facing a surge in retail fear, reaching levels of FUD (Fear, Uncertainty, Doubt) not seen since reports of U.S. trade tariffs six months prior. This increase in apprehension may be negatively impacting short-term demand.
Moreover, GraniteShares has filed for an ETF based on XRP in the U.S., including both 3x long and 3x short products, enabling traders to capitalize on both rising and falling prices. This filing aligns with XRP’s critical test of its support regions.
