Ripple’s XRP has fallen by more than six percent and is trading at the $2.22 level at the time of writing. The price of XRP is at a crossroads and has lost most of its gains over the past seven days. All top 10 coins are trading in the red, with Solana and Dogecoin posting double-digit losses.
Analysts speculate that XRP could be in the midst of a bigger correction after a strong rally earlier this month. The price could undergo a consolidation phase, which could be part of a larger correction pattern or a more extensive sideways move.
Potential scenarios, key resistance and support levels
Resistance zone
The immediate resistance for XRP is between $2.30 and $2.53. If the price reaches this range, it could face selling pressure and possibly take a negative turn. Traders should be cautious as the price approaches this area.
Critical support level
The key support level to watch is $1.96, where an earlier low was reached earlier in December. If XRP falls below this level, it could trigger further selling, potentially pushing the price lower to a range between $1.39 and $1.80.
Consolidation phase
XRP could be in the midst of a consolidation phase, with its price moving sideways within a certain range. This could be a correction after the recent rally. If XRP remains above the USD 1.96 level, it could eventually move higher and possibly test the resistance zone between USD 2.30 and USD 2.53.
Downside risk
If XRP breaks below the $1.96 support, a deeper correction could occur. In this case, the price could move towards the lower support zone between $1.39 and $1.80. This is a crucial level to monitor for a possible reversal.
Credit : coinpedia.org
