Market analyst Ananda Banerjee reports that the price of XRP has retreated nearly 9% this week, testing a crucial XRP support level located at 2.154 dollars. This zone is vital to determine if the asset manages to establish a market bottom or if, conversely, it deepens its current correction.
On the other hand, technical data reveals a hidden bearish divergence in the RSI, which explains the recent decline in the asset’s weekly valuation. However, there is a massive supply cluster of 1.359 billion tokens protecting the current zone, which could act as a solid barrier against additional drops if the bulls maintain their position.
Are we facing a cycle bottom or an imminent breakdown?
Likewise, it is important to highlight that the NUPL indicator has dropped to 0.32, marking its lowest reading in a year and suggesting a possible reset of investor sentiment. In this way, the market remembers that similar behavior in April triggered a 96% rally in valuation, transforming extreme fear into a historic buying opportunity.
However, if buyers fail to defend this critical zone, the price could slide quickly toward the bearish target situated at 2.065 dollars. Therefore, it is essential to recover the resistance of 2.394 dollars to confirm a bullish reversal and invalidate the negative thesis currently present in the cryptocurrency market.
Finally, the attention of large investors focuses exclusively on the bulls’ defensive capacity during the upcoming high-volatility trading sessions. For the XRP support level to effectively function as a springboard, a drastic change in buying pressure is required to validate this technical floor in the short term.
