The crypto market corrections caused the XRP price to plunge hard from a high of around $3.12 to a low below $1.8. With this, the token lost over $10 billion in its market capitalization, further flushing out of the top 3 cryptos as Tether reclaims its position. In the past 24 hours, XRP has faced over $97 million in long liquidations, the highest after Ethereum and Bitcoin. On the other hand, XRP-marked lows have been formed both with the USDT & BTC pair, which further raises concerns over the next price rally.
Meanwhile, the markets are displaying some resilience as the tokens are quickly climbing up, with the BTC price reclaiming $96,000. As a result, XRP bulls have also elevated the levels slightly by over 10% after a 25% pullback. Does this suggest a drop in the bearish dominance? Will the XRP price rise and achieve the lost levels above $3 or end up consolidating around $2.5 for some time?
The XRP price has broken the rising trend line, which has been acting as strong support since the breakout in November 2024. With this, the supertrend has turned bearish for the first time since the breakout, hinting towards a change in the market dynamics. Meanwhile, the token has held the 0.618 FIB at $2.3 as interim support, flashing the possibility of a rebound to $2.8 as the crypto received immense support from the bulls after hitting the monthly lows.
In the times when the token is believed to revive a strong upswing, some indicators suggest the bearish clouds may not fade so easily. DMI or direct movement index, tracks the change in the market trend and displays a huge deviation of the +Di and -Di lines that were about to undergo a bullish crossover. Besides, the ADX triggered a bullish reversal hinting towards a rise in the strength of the rally. Hence the rally is expected to continue in the current direction, which may pose more risk to the XRP price.
Therefore, the XRP price may remain under the bearish influence until it regains the lost levels at the 50-day MA at $2.6. Beyond this range, the recovery could be sharp; otherwise, a horizontal consolidation below $2.5 may be extended until market conditions ease out.
