Ripple’s XRP has dropped over 6%, currently trading at $2.22 as of this writing. Most of the gains from the past week have been wiped out, placing XRP at a critical juncture. The broader crypto market is also struggling, with all top 10 coins in the red—Solana and Dogecoin being the hardest hit, both experiencing double-digit losses.
Analysts’ Outlook: Is XRP in a Correction?
Market analysts suggest XRP could be undergoing a larger correction following its strong rally earlier this month. The price movement may reflect a consolidation phase, which could either develop into a prolonged sideways trend or signal the start of a broader correction.
Key Levels to Watch
Resistance Zone
XRP faces immediate resistance between $2.30 and $2.53. If it approaches this range, selling pressure could increase, leading to a potential price reversal. Traders should remain cautious as the market tests these levels.
Critical Support Level
The key support level is at $1.96, a recent low formed earlier in December. A drop below this point could trigger further selling pressure, potentially driving the price down to a range of $1.39–$1.80.
Consolidation Phase
XRP might be in a consolidation phase, with prices moving sideways within a defined range. If the coin holds above the $1.96 support level, it may rebound and test the resistance zone between $2.30 and $2.53.
Downside Risks
If XRP fails to hold above $1.96, it could face a steeper correction. The next critical support range would be between $1.39 and $1.80, which could act as a key zone for a potential reversal.
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This is no financial advice. Includes third party opinion.