Ripple (XRP) could fall below $2 after a 12% drop in the last week. Technical indicators highlight bearish momentum, making the $2 threshold critical.
Why XRP Faces Increased Downside Pressure
Several key indicators suggest XRP’s price may experience further declines.
RSI Signals Weak Momentum
The Relative Strength Index (RSI), a momentum tracker, shows XRP losing steam.
- On December 2, XRP’s RSI hit 96.25, signaling overbought conditions.
- This coincided with a local top at $2.73.
- The RSI has since fallen below 50, turning bearish.
Coupled with declining trading volume, this shift indicates XRP may dip below $2.34 in the short term.
Awesome Oscillator (AO) Flashes Red
The Awesome Oscillator (AO), another momentum indicator, supports the bearish outlook.
- AO measures recent price movements against historical trends.
- While the AO remains positive, red histogram bars suggest fading bullish momentum.
This combination of weak indicators could push XRP into further decline.
Head-and-Shoulders Pattern Adds to Bearish Outlook
On the 4-hour chart, XRP has formed a head-and-shoulders pattern.
- This classic reversal pattern signals a transition from bullish to bearish momentum.
- The neckline, a critical support level, is drawn at $2.40.
XRP has already fallen below the neckline, indicating weak buying pressure.
XRP Price Prediction: $1.87 or a Rebound?
If bulls fail to regain control, XRP could drop to $1.87, a significant support zone. However, a surge in buying pressure might push the price toward $2.90, reclaiming bullish momentum.
Investors should monitor the $2 level closely, as it remains a pivotal point in determining XRP’s next move.