The crypto market started the yearly trade with a massive bullish push that helped the XRP price reclaim its levels not visited in the past 7 years, surpassing $3.3. However, the crypto markets are facing major turbulence, due to which the XRP price is plunging hard after losing the key support at $3. What’s next? Should you consider selling XRP and joining the ‘panic seller’ list or hold until the selling pressure eases?
As the market sentiments have turned bearish, the XRP price may tend to remain deflated for a while. Meanwhile, the bulls are trying hard to hold the rally at $2.75, which has been the previous top after the breakout in November 2024. After losing over 12% since the early trading hours, the question arises whether it is the time to sell XRP as the buyers remain passive at the moment.
Ever since the price lost support at $3.1, the bears have held a strong grip over the rally and dragged the price by over 12%. The volume has soar by over 200%, crossing $9 billion, which is majorly dominated by the bears, hinting towards the token offering a good buying range shortly.
The short-term price action of XRP suggests the token is facing a free fall after losing the resistance at the 50-day MA. There is a possibility of a healthy rebound as the 200-day MA is expected to offer a strong base. With this, the price could continue to drop by another 4% to 5%, reaching close to $2.6 that may further attract massive liquidity. One of the major bullish signals is the bullish reversal seen with the ADX, hinting towards the rally gaining strength. However, the +Di & -Di levels have diverged away from each other after a bearish crossover, suggesting the rebound could consume more time than speculated.
Therefore, the XRP price continues to remain within a bullish range regardless of the persistent bearish pressure escalating over the token. The market sentiments are believed to turn bullish very soon, pushing the price back above $3. Hence, the probability of a new ATH still remains higher as the XRP price remains primed to surge beyond $4 in the upcoming days.
