During Wednesday’s U.S. trading session, the crypto market experienced a notable sell-off, following United States President Donald Trump’s announcement of reciprocal tariffs on several countries. As a result, the Bitcoin price fell 3%, while the cryptocurrency of Ripple payment company, XRP, fell over 6% to hit $2.01. However, the selling pressure on the XRP price could escalate as it’s nearing a breakdown from a major support zone.
Key Highlights:
- The $1.92 support, accompanied by the 50% Fibonacci retracement level and the 200-day exponential moving average, creates a high accumulation zone.
- The downsloping resistance trendline and $1.92 drive the current price movement of Ripple cryptocurrency.
- The potential breakdown of XRP price will accelerate the selling pressure for a +20% fall.
XRP Price Nearing A Breakdown Below Multi-Month Support
On April 2nd, 2025, the XRP price plunged nearly 6% and reached its current trading value of $2.01. The selling pressure can be attributed to a broader market downturn as Donald Trump announced reciprocal tariffs for a range of countries.
The falling Ripple cryptocurrency is just 4.75% away from challenging the multi-month support of $1.92. Since December 2024, this horizontal support has acted as a major accumulation zone for crypto buyers and bolstered a bullish reversal ranging from 43% to 73%.
Thus, the potential retest will act as a pivot floor for the XRP price to recuperate the bullish momentum or drive a prolonged correction.
A bearish breakdown below $2 support with a daily candle closing will strengthen the seller’s grip over this asset. With sustained selling, the post-breakdown fall could plunge the asset 20% down to test the 61.8% Fibonacci retracement level at $1.58, followed by a fall to $1.3.
On the contrary, if crypto buyers continue to defend the horizontal floor, the coin price will bounce 22% to challenge a downloping resistance trendline at $2.5.
Key Indicator:
- Exponential Moving Average: A potential bearish crossover between the 50-and-100-day EMA could raise the market selling pressure toward the $2 breakdown.
- Average Directional Index (ADX): the XRP price fall coinciding with a surge in ADX slope indicates that the sellers have sufficient momentum to drive an extended correction.
Also Read: Is Pendle Price Recovery Sustainable For 30% Upswing?
