XRP’s price trajectory faces a crucial test as the fourth-largest cryptocurrency experiences mounting pressure following the US announcement of potential 50% EU tariffs. Recent institutional developments in XRP futures may provide some support, but technical indicators suggest caution.
XRP Technical Analysis: Critical Support Zone at Risk
The digital asset has declined 4.08% in the past 24 hours, currently trading at $2.33. This bearish price action comes after XRP reached $2.45, aligning with Bitcoin’s recent all-time high before experiencing significant rejection.
According to prominent analyst CasiTrades, XRP’s price structure shows concerning signals as it approaches the critical $2.25 – $2.26 support zone. This level coincides with the 0.382 Fibonacci retracement level, which has served as a reliable technical indicator over the past six months.
Key Price Levels to Watch
The Elliott Wave analysis reveals a 1:1 Fibonacci extension of the corrective C-wave pattern, suggesting potential exhaustion of the recent relief rally. A breakdown below $2.25 could trigger a cascade of selling pressure, potentially pushing XRP towards the $1.55 – $1.90 range.
However, if the support holds, XRP could see a recovery towards $2.70, with potential continuation to test the local peak at $3.84. Recent analysis suggesting a $4 price target remains valid if current support levels maintain.
Market Context and Institutional Development
Despite the weekly decline of 1.45%, XRP maintains a positive monthly performance of 9.77%. The recent launch of Volatility Shares’ XRP futures ETF on May 22 adds a new dimension to institutional accessibility, potentially providing additional market support.
FAQ Section
What is the current market cap of XRP?
XRP currently maintains a market capitalization of $233.58 billion, securing its position as the fourth-largest cryptocurrency globally.
What are the key support levels for XRP?
The critical support zone lies between $2.25 – $2.26, with secondary support at $1.90 and tertiary support at $1.55.
How does the EU tariff news affect XRP?
The proposed 50% US tariff on EU goods has created broader market uncertainty, contributing to negative pressure across crypto assets, including XRP.
