XRP Hovers At Key Support After Dipping to $2.34: Traders Watch for Next Move

XRP is trading near $2.34, testing critical support at $2.31 amid a double-bottom formation and overall market caution.

Price remains trapped between $2.31 and $2.42, with low momentum and key resistance at the $2.62 Fibonacci level.

If XRP goes higher than $2.42 or lower than $2.31, it will be due to the strength of the bulls and current market conditions.

Recently, CoinMarketCap shows that XRP was trading at $2.34, a decrease of 3.2% in the previous 24 hours after experiencing a gain of 7.9% in the last week. Even with the recent decline, XRP is above a falling red trend line, a place where it has nicely supported prices during the same period. As volatility increases, traders are watching closely for a decisive move beyond this narrow range, either upward or downward.

XRP Trades Sideways Amid Mounting Pressure

For the past trading days, the price range of XRP has been between support at $2.31 and resistance at $2.42. The Fibonacci 0.888 retracement level is thought to be responsible for the small swing happening in price at the moment which ranges from $2.30 to $2.62

Source: (X)

This has kept the market moving sideways and raised doubts as to how prices will change shortly. While this zone has previously served as a bounce area, the repeated touches suggest rising pressure that may soon be released through a breakout.

Technical Indicators Point to Inflection

In general, the continuation of the red descending trend line is important for shaping XRP’s price. Recently, this line being tested and overbought has made it an important area to notice. According to analysis from Egrag crypto, he emphasizes that if the price drops below $2.31 and there is good volume, it could reverse the double-bottom pattern. In contrast, a move above $2.42 would signal a potential breakout, possibly targeting the $2.62 and $3.10 Fibonacci levels next.

Market Sentiment Remains Cautious

Traders continue to take a measured approach to the market. Because volume and significant events are missing, any potential reversal from the double-bottom is not very confident. Furthermore, a sense of hesitation has appeared in the entire crypto sector, suggesting that investors and the economy are unsure. A break from the current structure is expected to set the tone for the next major price movement.