XRP Battles Key Resistance After 18% Weekly Drop, Bulls Push for Recovery
- XRP has dropped 18% in the past week as market sentiment weakens.
- Trumps new trade tariffs add to uncertainty, impacting crypto markets.
- XRP needs to break $2.67 and $2.81 to regain bullish momentum.
- A drop below $1.77 could indicate further downside risk.
Ripples XRP is experiencing intense selling praessure, dropping 18% over the past week as the broader cryptocurrency market turns bearish. This decline comes amid increasing global financial instability, fueled by newly imposed U.S. tariffs under President Donald Trumps latest executive order.
U.S. Tariffs Shake Markets, Adding to XRPs Decline
On February 1, Trump signed an executive order introducing major tariffs that have unsettled both traditional and crypto markets. The key measures include a 25% tariff on imports from Canada and Mexico, 10% tariffs on Canadian energy and oil, and 10% tariffs on Chinese imports.
In response, Mexico and Canada have imposed retaliatory tariffs, intensifying economic tensions and further dampening investor confidence. This uncertainty has contributed to the broader market downturn, adding to XRPs recent struggles.
At the time of writing, XRP is trading at $2.42, with a 24-hour trading volume of $9.90 billion and a market cap of $139.42 billion. The cryptocurrency has seen a 3.61% drop in the last 24 hours, reflecting continued bearish sentiment.
XRP Bulls Eye Breakout as Key Levels Hold
Crypto analyst EGRAG CRYPTO highlighted that, for XRP to regain bullish momentum, it must close above the 21 EMA at $2.67. This level serves as an important short-term resistance, and a successful breakout could signal renewed buying pressure. Additionally, a break above $2.81 (Fib 0.702 level) is seen as crucial for a sustained upward move, as it would confirm a shift in market sentiment toward the upside.
XRPs current price action suggests it may continue trading within a range, with Fib 0.5 ($2.45) and Fib 0.382 ($2.27) acting as key support levels. If selling pressure intensifies, potential price wicks could extend towards Fib 0.618 ($2.65) on the upside and Fib 0.236 ($2.06) on the downside. These levels will play a crucial role in determining XRPs next move, as holding above support could stabilize the price, while further breakdowns may lead to increased volatility.
A strong support range exists between $2.27 and $2.45, while a broader trading range of $2.06 to $2.65 could define short-term price action. However, if XRP drops below $1.77, it could indicate significant weakness, though the long-term bullish structure may still hold.
While the token faces downward pressure, analysts note that holding key support levels could prevent further declines. However, ongoing macroeconomic concerns, including trade tensions and regulatory uncertainty, continue to weigh on the market.
Investors are closely monitoring how global markets react to the new tariffs, as heightened volatility could impact not just XRP but the entire cryptocurrency space. A bullish breakout would require strong buying volume and a clear break above key resistance levels, while failure to hold support could trigger further downside.
Related | Crypto Market Faces Diverging Sentiments Between Retail and Pros
Read more: https://www.tronweekly.com/xrp-battles-key-resistance-after-18-weekly-drop-bulls-push-for-recovery/
Text source: TronWeekly
