The course of XRP has been balancing on the edge for days. A retest of the important support zone around $ 2.30 seems inevitable. Different technical signals indicate increased risks. If this support breaks, it can lead to solid sales pressure and a possible decrease towards lower price levels.
Beerarish pattern sets racing pressure on XRP
On the 1-hour graph a classic main and shoulder pattern-a pattern that often points to a trend number. According to analyst Ali Martinez, the neckline is around $ 2.30, a level that XRP is currently being tested seriously. A breakthrough below this border could open the door to a fall towards $ 2.
The pattern reflects a deterioration of the sentiment around XRP, despite the fact that the rate is still above its 50 and 200-day average. Those averages are at $ 2.21 and $ 1.90, which is normally seen as positive.
According to crypto analyst Egrag Crypto, the $ 2.30 zone is not just a technical level. It is linked to the 0.888 Fibonacci Retracement, and acts as the tipping point between recovery or further decline. If the price remains above this line, a recovery to $ 2,619 is within reach. If that level is also broken, then $ 3.10 comes again. His ultimate price target is even $ 3.39.
However, XRP falls under $ 2.30, then the following realistic support levels are $ 1.61 and possibly even $ 1.20. Both levels are in line with earlier price structures and Fibonacci projections.
Crucial days
Despite the threat of a correction, there are signals that offer hope. XRP retains its upward trend for as long as the course continues above the 50 and 200-day average. The XRP-Futures of CME Group went live on 19 May, a step towards further institutional adoption. However, the price effect is still limited for the time being.
Furthermore, Ripple will soon release a billion XRP, something that happens monthly and usually has little impact. But given the current uncertainty, the timing can now cause price pressure.
Source: https://newsbit.nl/xrp-op-de-rand-van-een-correctie-wat-doet-de-koers/
