- XRP drops 8.15% to $2.18 as a recent pullback breaks a bullish breakout pattern.
- Analyst predicts $2.62 rebound could liquidate $20.50M short positions for XRP.
- XRP holds $2 support but risks further downside if it breaks below this key level.
XRP is now in the red zone after seeing an 8.15% drop to trade at $2.18 as of press time. A recent pullback has broken the bullish breakout pattern and created some doubts regarding the altcoin’s short-term trend. Analyst Ali Martinez pointed to a possible bullish reversal for XRP. Martinez posted on Friday in an X post that once XRP returns to $2.62, around $20.50 million worth of short positions will be liquidated.
Potential Bullish Reversal
XRP remains within a bullish market structure despite not showing strong upward momentum. The main hurdle is that $2.90 to $3.00 has been seen to limit the upside time and again. On the flip side, XRP has a solid floor at $2, which has been a key support level. A decline below $2 could suggest further sell-off signals.
The nearest resistance level is between $2.30 and $2.31, and the price is still being supported at $2.05. If XRP drops to $1.90, the market may shift to a bearish trend from the bullish trend. The fact that XRP has been able to hold support at $2.05 keeps hope of a rebound alive. A break to lower levels may pull the cryptocurrency down to $1.60. A push above $2.35 would open the door for $2.60 as the next resistance level. As of press time, XRP is down by 11.3% over the past week.
XRP Poised for Bullish Move: Key Levels Could Trigger RallyThe price of XRP continues to attract analysis as traders try to determine whether it can maintain crucial support and break past resistance. As the market continues to chip away at recent gains, a potential bounce back into a more bullish scenario remains on the table as key levels are approached in the next couple of days.
