With a growing bearish intensity in the crypto market, XRP is down by 23.84% in the past seven days. Currently, XRP has a market cap of $118 billion, making it the fourth biggest cryptocurrency.
However, the declining market sentiment has dipped the fear and greed index to 21. Furthermore, the total crypto market cap is down at $2.66 trillion, marking a 7.57% dip in the past 24 hours.
As Bitcoin struggles near the $80,000 mark, the increasing bearish influence in the crypto market warns of a potential down in the XRP price below the $2 psychological support.
XRP Price Analysis
In the daily chart, the XRP price trend has reached the $2 psychological mark with an intraday pullback of 6.93%. This marks a 20% drop this week, followed by the 5.60% correction in the previous week.
Furthermore, the altcoin price action reveals a bearish breakdown of a rising channel pattern to reach the $2 psychological mark. With a lower price rejection in the intraday candle, it has marked a 24-hour low at $1.9485.
As XRP warns of a potential closing under the $2 psychological mark, the broader market anticipates a quick correction. The MACD and signal lines have given a negative crossover plunging deeper into the negative territory.
Furthermore, the negative histograms are growing in intensity. The daily RSI line has reached the oversold boundary level hinting at a potential dip into the oversold region. Hence, the technical indicators are suggesting a potential downfall.
XRP Price Targets
Based on the Fibonacci levels, XRP is currently consolidating between the 38.20% and 50% Fibonacci levels. These crucial horizontal levels are priced at $2.22 and $1.89.
A correction under the 50% Fibonacci level will likely drop prices to $1.56. Hence, the price action analysis reveals a downside risk of more than 20%.
On the flip side, the lower price rejection near the 50% Fibonacci level has led to multiple bounces back. This has occurred on February 3, December 10, and December 1, 2024.
$XRP could be gearing up for a relief rally as the TD Sequential indicator flashes a buy signal on the hourly chart! pic.twitter.com/AHTQjfAljt
— Ali (@ali_charts) February 28, 2025
As the daily price action reveals a potential downfall, Ali Martinez as a crypto analyst highlights a potential reversal based on the early time frame. In his recent tweet, the analyst highlighted the TD sequential indicator flashing a buy signal amid the bullish struggle near the $2 psychological mark.
Hence, with a potential recovery, the XRP price could retest the overhead resistance trendline near the $2.48.