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- XRP faces pullback as bearish sentiment grows; $2.25 imminent.
- Ripple’s token unlock adds fuel to growing XRP bearish trend.
- Will XRP hold $2.25 support or face deeper corrections?
XRP’s recent price action has sparked concern among traders, with many predicting a potential pullback. The digital asset is currently trading at approximately $2.53, displaying weak momentum. According to analysts, a revival toward the $2.25 level may be near, as bearish sentiment is increasing within the market.
Ali Martinez, a well-known market analyst, points to XRP’s failure to break above the $2.57 resistance level. The token then took a turn for the worse after several attempts to gain ground, resulting in a sell-off. Sellers took advantage of this failure and forced the price down. According to Martinez, the critical point of the short-term level is $2.45. If this support level cannot be sustained, XRP may fall even further to $2.25.
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Technical Weakness Points to Further Losses
The technical structure of XRP also promotes the negative perspective. The token is currently trading below its significant moving averages, indicating that bullish momentum is waning. This usually precedes further losses, particularly when there are numerous unsuccessful attempts to accelerate upwards. The recent price trend of XRP also suggests that the market is losing faith in the asset’s potential for growth.
Martinez is of the view that XRP can consolidate in the short run around the $2.37 point and thereafter widen its losses. A downturn below $2.45 would confirm the continuation of the downtrend. The traders are also closely monitoring the support level of $2.25 because this price has been a significant obstacle for sellers in the past. Failure to maintain above this point may lead to further losses, exacerbating the bearishness.
Ripple’s Token Unlock Heightens Market Uncertainty
The recent massive token unlock by Ripple has introduced even more uncertainty in the market. The company issued 1,000,000,000 XRP in several transactions valued at more than $2.4 billion. This liberation has sparked conjectures about its potential impact on the price of XRP. This unlock has not been particularly helpful, considering the market is already under bearish pressure.
The primary support level is at $2.25, and as traders closely monitor the price action of XRP, this level will be the area to focus on as long as the price does not breach it. Any break below this point will result in a further correction effect and volatility in the future.
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