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XRP drops 6% from $2 to $2.04; price is testing critical psychological support level
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Price trades beneath key EMAs, RSI is nearing oversold, but MACD remains negative
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Supporting $2 on April 1 is crucial to avoid a possible drop towards $1.95 next
XRP was under significant downward pressure at the end of March. The cryptocurrency suffered a significant decline the day before. According to CoinMarketCap, its price dropped to $2.04 in the last 24 hours, a 6.4% decline.
Despite minor bullish corrections during that time, the near-term trend is still bearish. Recent trading volume decreased by 4.2%, confirming signs of a weakening asset’s momentum.
This combination indicates that buyer interest is low and the market is struggling to maintain higher prices. As April begins (specifically, looking at April 1st), traders are closely watching key support and resistance level to gauge XRP’s next likely direction.
XRP faces resistance as selling pressure intensifies
Recently, XRP faced strong resistance from sellers in the $2.17-2.18 area. This zone marked the high of the day before the price fell again. It acted as a critical zone where selling activity increased, pushing prices lower.
Multiple price rejections took place during intraday trading in the zone between $2.12 – $2.13. These levels indicate that there is significant overhead resistance at the moment. This makes it hard for XRP’s bullish momentum to return quickly. If buyers do not overcome these immediate barriers convincingly, the downward trend may continue into April 1st.
Related The Paradox of XRP: Why Holder Fatigue could be a Bullish Contrarian Indictor
The Key Support Levels Could Determine XRP’s Next Move
XRP is currently testing the $2.04 level of support. This area is of immediate interest as we approach April 1. If this level is able to withstand selling pressure, a minor technical rebound could occur.
If the current bearish momentum continues into the first month of the year, XRP could drop towards the important psychological level at $2.00. Due to the concentration of market orders around round numbers like $2.00, they can provide significant support or opposition.
If XRP breaks below the $2.00 mark, it could be pushed to the next technical support area identified near $1.95. This would only strengthen the current bearish sentiment around the asset. On April 1, market participants will closely monitor these support levels for signs of a possible trend reversal or confirmation of further declines.
Technical Indicators Point To Continued Bearish Momentum
On the daily chart, the Relative Strength Index for XRP is currently near 36.68. This reading is approaching the technical oversold zone (normally below 30). While extremely low RSI can sometimes precede bounces if purchasing interest returns, for now the RSI trend is still downward, indicating weak underlying momentum.
Related : XRP’s early pullback after the end of the lawsuit leaves users dissatisfied
The MACD indicator also clearly shows a bearish cross-over, with the MACD itself below the signal line. Its histogram displays increasing negative (red), bars, which indicate a growing bearish momentum in recent sessions.
These indicators indicate that downward pressure on XRP may continue into early April unless a strong catalyst or a shift in buying activity is soon.
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