XRP is facing downward pressure, trading below significant resistance at $2.80. Analysts are closely watching the situation as the price hovers below key levels. Analysts indicate that without a breakout soon, the risk of further declines increases, compounded by technical indicators showing momentum weakening.

Key Resistance Levels to Consider

As of now, XRP’s price is at $2.27, reflecting a 6% drop in the past day and more than 19% over the week. The token is currently positioned just shy of two crucial price points: the previous support at $2.4, which has turned to resistance, and the 0.618 Fibonacci retracement level near $2.8 — both of which have obstructed attempts at recovery.

Analyst Lark Davis noted:

"$XRP is facing two major resistances right now. Previous support is now acting as resistance, along with the 0.618 Fib level right above it. Bulls must secure a weekly close above approximately $2.8; otherwise, further downside may be imminent. Watching closely."
(Translated)
“XRP currently faces significant resistance levels. The previous support is now functioning as resistance as well as the critical Fibonacci level ahead. To avoid further losses, bulls must manage a weekly close above roughly $2.8.”

Moving Averages Indicate Downward Trajectory

A bearish crossover has formed on the daily charts, with the 50-day moving average dipping beneath the 100-day average. Historically, each time this crossover appeared, it preceded notable price declines, the most recent of which involved a staggering 46% drop.

The current MACD has crossed below its signal line on the weekly chart, signaling increasing downside momentum, evidenced by expanding red bars on the histogram. Traditionally, similar setups have led to extensive periods of price decreases. Additionally, the RSI has trended down to 44, below the neutral mark of 50, indicating diminished buyer strength recently.

Market Trends Source: TradingView

Potential Support and Market Movement

Recent reports suggest that if XRP fails to maintain its present levels, traders are eyeing $2.1 as the next support boundary, sitting just above the psychological $2 mark. Should it dip below this threshold, the focus would shift to $1.78, while an upward shift would target the resistance at $2.8, with a close above that level potentially indicating a more favorable price structure.

Additionally, Ripple has formed a partnership with Absa Bank in South Africa, enhancing the bank’s digital asset operations through Ripple’s custody technology. In a separate initiative, the company is also collaborating with Immunefi to bolster security across its XRP Ledger lending protocol. These actions signify Ripple’s ongoing commitment to expanding its services in the enterprise and institutional sectors.