XRP experienced a significant price drop, falling more than two points to trade around $2.11-$2.12 after losing support above the 50 and 100 EMA. The selloff triggered massive liquidations worth roughly $7.6 million, predominantly affecting long positions and creating a 182% imbalance between long and short liquidations. Despite this downturn, XRP currently holds above crucial support zones between $2.08 and $2.10, corresponding to its 200-day moving average and weekly Fibonacci support, historically acting as strong dynamic support.
Technical indicators reveal oversold conditions, with RSI levels near or just above 29-45 and convergence seen in MACD and Stochastic RSI, suggesting bearish momentum may be waning and a short-term bounce is possible. XRP has been forming a long-term descending triangle that appears to be approaching resolution, with potential for a breakout target between $2.45 and $2.60 if support holds and buying interest returns.
The price drop is being interpreted by some analysts as a potential bear trap designed to shake out weaker hands before an upswing. The key resistance levels to overcome are $2.22-$2.26, while failure to hold $2.08 could expose deeper downside risks toward $2.00 and possibly $1.92, marking important Fibonacci retracement levels. Investor optimism is further fueled by institutional interest exemplified by Ripple’s partnership with Guggenheim and ongoing speculation around an SEC-approved XRP ETF.
Overall, while XRP’s recent volatility induces uncertainty, the convergence of technical support levels and institutional developments form a critical recovery zone that may lead to a robust rebound if confirmed by volume and price action above key resistance points.