Ripple’s XRP is currently down by more than 23% in the last seven days and is now trading below the $2.40 mark. The altcoin last traded above the $3 mark on February 1. XRP is now trading within a broader sideways range. Despite a failed breakout attempt on January 16, where the price couldn’t sustain above the all-time high, a larger corrective pullback followed. This pattern suggests a potential continuation or reversal, with two possible scenarios in play. However, Bitcoin and majority of the top 10 altcoins have slid into the red zone and the overall market cap has also taken a hit.
Short-Term Bullish Outlook
The short-term bullish scenario sees XRP bottoming on February 3 and potentially moving towards new highs, aiming for levels between $4.20 and $5. If the price can break the $3 mark again, the next target could be $6.60.
Short-Term Bearish Outlook
In the bearish scenario, the recent dip could just be part of a larger corrective wave. A break below key support levels like $2.20 or $2.10 could signal a deeper decline, possibly leading to a drop towards $1.95. This scenario requires careful attention to the overall market structure.
Key Support Levels to Watch
Important support levels for XRP include $2.35, $2.22, and $2.11. A break below $1.95 could trigger a larger drop, bringing the price down to around $1.20, but this would likely signal a return to a larger correction phase.
Bullish Breakout Signal
Any movement above the trendline or a price surpassing $2.70 would indicate a shift in the microstructure and the potential for an upside reversal. Traders should keep an eye on this breakout signal for a possible rally.
