What Could Happen If XRP Loses the $2.70 Support?

XRP is trading at its opening price at the time of writing, exhibiting slight volatility. Its trading volume dropped by over 64% in the last 24 hours, coinciding with the recent price action.

The coin has held steady after its less impressive increase on Friday. It retraced to $2.70 but rebounded and closed with gains of 1.45%. Compared to the losses the coin had on Thursday, the pullback was meager. 

Investors expected the asset to at least reclaim half of the 6% it lost during the fourth day of the week. The PCE release was another reason for this expectation, as it came in as expected. However, trading actions during the previous intraday session show that bulls were exhausted. 

The coin is currently trading near $2.80, following its rebound, but concerns about how prices will unfold in the coming days remain in the balance. 

Recall that a previous analysis indicated the altcoin would retrace to $2.70. However, it suggested that the asset will rebound after testing the mark. Friday marks the second attempt at the mark in the last 21 days. The first occurred on Monday, when XRP briefly slipped below it but rebounded, closing with losses of almost 4%.

The altcoin is still trading close to its support level and is at risk of slipping further if buying activity does not resume. 

What Could Happen? 

XRP’s consistent retest of the $2.70 support over the last three months suggests that a flip may happen soon. A previous analysis noted that the sentiment across the crypto market is significantly low, dropping to levels seen in April. Further selling pressure may mount on the highlighted level if the current conditions persist.

The 1-day chart reveals that losing the $2.70 barrier could prove detrimental for the bulls. It highlights no level of demand concentration close to the mark. As a result, previous price movements point to a possible decline to $2.30. 

A closer look at trading action between Jan 31 and Feb 5 reveals an instance when the coin dropped below $2.70. It retraced and found support at $2.30, lingering at this mark for more than seven days before breaking out. It is also worth noting that the coin struggled to reclaim the level after losing it as it became a sell wall.

In a worst-case scenario, the altcoin may plummet lower, dropping to $2.10 before recovering. This trend played out in February.

XRP to $2.30. What are the Odds?

The 4-hour chart suggests a slim chance of this happening within the next three days. XRP retraced below the bollinger bands on Thursday, but is trading within them at the time of writing. The coin is edging closer to the middle band, and a successful flip could result in an attempt at $2.90.

Moreover, the moving average convergence divergence displayed a bullish crossover on Friday, indicating an extended period of notable uptick.

However, the 1-day chart suggests a 50% chance of such a slip happening. Previous price movement shows that several declines to $2.30 happened after a failed attempt at $2.80. XRP has struggled to crack this key level twice with no decisive flip. If previous trends repeat, the coin will retrace further.

Nonetheless, XRP retraced below the bollinger bands on Thursday, but is trading within them at the time of writing. Its recovery to the bands suggests an attempt at further recovery. 

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