Recently, XRP has been following a precarious path, and its price action is currently teetering perilously near a collapse below important support levels. XRP has experienced another decline and is now trading in the $2.17 region after failing to break through the resolute descending trendline, a strong wall that has been in place for months.
Every time a breakout attempt was thwarted by intense selling pressure, the charts displayed a traditional descending triangle formation. Any bullish hopes are still brutally capped by the blue downtrend line. If no significant buying interest shows up in the coming days, XRP could lose a significant portion of its market capitalization due to this recent rejection from the trendline.
Right now, XRP is clinging to the $2.15-$2.10 zone, which is one of the key price levels to watch. It is likely that the next psychological level at $2.00 will be tested shortly if this area does not hold. However, the worst-case scenario is a break below $2.00, which would open the door for a sharp drop toward the $180-$170 range and, in effect, the dreaded $1 zone.
Both the 100-day and 200-day EMAs for XRP are hovering above the market, turning from support to resistance. This has ended any chance of a recovery rally. The RSI falling below 40 is a bearish indicator that momentum is rapidly ebbing away. Panic-selling may worsen as buyers become more scarce for XRP if there is not a significant reversal soon.
The goal for bulls is straightforward: break through that descending trendline with conviction and take back the $2.30-$2.35 region as soon as possible. Failing to do so would probably mean this asset’s short-term demise. XRP is close to making a last stand before the $1 zone looms large. The market may be on the verge of a significant capitulation event, which would cause XRP to drop to levels not seen in months if bulls do not appear soon.
