- XRP price is trading around 2.82, a very close range of the critical 2.77 support level that analyst Ali pointed out.
- Any fall below 2.77 can cause a steep rebound to the historical demand zone of 2.40.
- XRP price is still making a series of lower highs and lower lows, which are indicative of an extended short-term bearish trend.
XRP Price is nearing a breaking point as the price action becomes strained around a vital support area. As the market makes lower highs and re-examines the same level, the subsequent action may be what allows the bulls to take over again or the bears to continue the correction to a further level. A move above $2.77 would be necessary, and inability to do so could lead to a sharp reversal to $2.40, and determine the direction of the trade in September.
XRP Price Teeters on Key Support Level as Breakdown Risks Intensify
The Ali Chart indicates that XRP needs to maintain a price of above $2.77 not to go back to $2.40. The technical structure observed on the chart is very strong in supporting this statement.
In recent weeks, XRP price has been moving in a definite downtrend, with decreasing highs and decreasing lows, displaying declining bullish momentum. It is now currently trading near the resistance of $2.82, just a bit higher than the significant support of $2.77, which in the past has served as a key pivot point, as seen by the black arrows indicating past rebounds and inflection points.
The construction indicates that a major demand zone is $2.77. A decisive break below this may result in a snowball effect of selling, which may culminate in a steep fall to the other historical support zone of $2.40.
This situation has been described by Ali in his chart and marked by a dotted line, which shows a possible decline in several legs and temporary relief rallies between the lines, and then more downward movement occurs.
Providing that the bulls are able to maintain the support at the $2.77 and make a bounce, the resistance would be at the next level approximately $3.00-$3.10, where the breakdowns have taken place before. A robust near high above this area would be required to change the market structure back to bullish.
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