XRP Price Heading Towards the Critical Support-Will it Drop Below $2?

The post XRP Price Heading Towards the Critical Support-Will it Drop Below $2? appeared first on Coinpedia Fintech News

Lately, the XRP price has refrained from displaying massive moves with a potential to march towards the higher targets. Meanwhile, the drop in the strength of the bulls could raise some concerns for the upcoming price action. The price has been moving quietly, down by 5.34% since the start of the week after losing a similar margin during the weekend. However, the bears have held a tight grip over the rally, which suggests the support at $2 could be broken in the coming days.

The XRP price is in the state of confirming a bearish pattern in the short term as it heads towards the critical support zone around $2.04. A drop below the range is expected to initiate a further decrease. However, breaking the range could present some challenge, as the bulls have captivated the range and have prevented it from draining below the range. However, the volatility of the token has slashed hard, which suggests the price may remain consolidated for a while before initiating the next price action.

The daily chart of XRP price suggests the token is trading on a crucial support at the 200-day MA at $2.07. Although the token has triggered a rebound, the bullish divergence is yet to be validated, which could occur once the price rises above the average bands of the Bollinger. These bands are going almost parallel to each other, hinting towards a drop in the volatility as the bulls and bears are failing to exert pressure.

Meanwhile, the RSI and MACD hint towards a bearish continuation, which could raise some concerns.

The MACD, which has just risen into the positive range, triggered a bearish crossover and is heading back into the negative range. Besides, the RSI has been maintaining a steep descending trend and plunged below the average range. This suggests a significant drop in the strength of the rally that may compel the price to remain within a consolidated range. Hence, the XRP price is believed to drop below the descending trend line for a while, which could attract buying volume, but a rebound to $2.5 remains highly dependent on the volume induced.

Therefore, the buy zone for the XRP price could be around $1.85, which is a strong support and a potential reversal area, triggering an entry. A confirmed bounce from the range between $1.85 and $1.90, the targets could be $2.95 after surpassing $2.5 and later at $3.39 and $3.87.