XRP Battles to Hold Above Critical Support Level
XRP is facing renewed selling pressure, with the cryptocurrency losing a crucial support level. The price has dropped from its February 15 high of $2.83, sparking concerns among traders about a possible further decline in the coming days.
The latest downturn has seen XRP fall below the 50-day simple moving average (SMA) for the second time in less than two weeks, raising the risk of a deeper correction.
XRP Must Reclaim 50-day SMA to Avoid Further Losses
XRP has struggled to hold above the 50-day SMA, a key technical indicator that has historically acted as a strong support level. The altcoin first fell below this level on February 2, when it slipped from a high of $2.95 to close at $2.57.
The 50-day SMA had been supporting XRP’s price since November 10, 2024. After briefly reclaiming this support on February 14, the cryptocurrency lost it again just two days later.
XRP/USD daily chart.
Traders are now watching closely to see if XRP can regain this level. Historically, the altcoin has seen significant price rallies after reclaiming the 50-day SMA. For instance, when XRP moved above this level on November 10, 2024, it triggered a 500% price surge. Similarly, in July and September 2024, reclaiming the SMA preceded 35% and 18% rallies, respectively.
Pseudonymous analyst MackAttackXRP recently noted on social media platform X that XRP could be eyeing a breakout, provided it holds support at $2.40. The analyst suggested that a move back above the 50-day SMA “could signal a strong rally” and propel XRP higher.
Despite the recent volatility, analysts maintain a long-term price range for XRP between $1.20 and $4.20.
Bearish Pattern Suggests XRP Could Drop to $1.70
From a technical perspective, XRP remains within a bearish continuation pattern known as a bear flag, indicating a possible extended decline if key support levels fail to hold.
The bear flag developed after XRP plunged from $3.13 to a local low of $1.76 between January 31 and February 3. Since then, XRP has been consolidating within an ascending parallel channel, with its latest drop testing critical support at $2.50.
XRP/USD daily price chart.
If XRP breaks below this level, it could trigger another wave of selling pressure, potentially driving the price down to the bear flag’s projected target of $1.73—a decline of approximately 32% from current levels.
Popular crypto analyst CrediBULL Crypto has also cautioned that XRP could continue its correction if it remains below the 50-day SMA. According to the analyst, failure to reclaim this key level could push XRP toward a further decline to around $1.77.
With market sentiment turning cautious, traders will be watching closely for signs of a potential recovery. Reclaiming the 50-day SMA could help XRP avoid a deeper correction and set the stage for a new rally. However, failure to do so may lead to further downside in the coming weeks.
