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- XRP drops sharply after failing to hold $3.45 level.
- Analysts point to $1.85 as possible bearish target soon.
- Key support at $2.65 now under pressure from sellers.
XRP recorded a sharp reversal this week after reaching the $3.45 resistance level, raising fresh concerns over its short-term trajectory. The sudden drop has reignited bearish sentiment. The traders are now eyeing the $1.85 support zone as a possible target if the pressure continues.
Throughout the latest rally, XRP has temporarily crossed a serious resistance area commonly referred to as Valhalla by chart analyst Egrag Crypto that begins at $3.45. But extreme selling pressure caused a rapid reversal, with this being the most recent inability to maintain a breakout. Such a rejection happened to occur only five bars (just 35 days) after one of the most essential bullish candles, as expected – right in line with the earlier predicted rejection time.
As shown by Egrag in the chart analysis, the trend of XRP is divided into four big zones. XRP is once again in Region 2, or what is known as the Super Bullish region, after retreating in it. In the meantime, not only is Region 1 just below the 1.80 parity now the final possible obstacle between the bullish scenario and actual drop on the USD, but it is also the last possible, strong support zone that could protect the bullish situation and save it.
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Bearish Pattern Returns as Traders Shift Focus to Critical Support Zones
The correction was the aftermath of a diamond-shaped bearish candlestick pattern that had in the past resulted in prolonged downtrends. Nearly identical formations at the beginning of this year, in January and May, were preceded by significant price declines. The inability to ascend beyond the body of the Shooting Star candle only added to the foreseeability of a probable further decrease.
In spite of the rejection, XRP has successfully held support at around $2.65 so far. At this level, investors are focused on determining whether this current correction will only be short-term or more of a long-term direction. A clear break underneath this support would set the $1.85 in sight, which is the lower confine of the bullish structure of XRP.
The traders have been monitoring the current price movement of the XRP, which is hovering in a thin margin. Falls below $2.00 would wipe away any slight bullishness and lead to a larger sell-off.
The rejection of XRP at the resistance zone of $3.45 has raised concerns about downside exposure. Following the slump to $1.85, market watchers are bracing for possible movements as the Cryptocurrency leverages the support areas.
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