Key takeaways
- XRP is down 1% in the last 24 hours and risks dropping below the $2.70 support level.
- The bearish performance comes as Bitcoin and other leading altcoins underperform.
XRP continues to struggle below $3
XRP, the native coin of the Ripple ecosystem, is the worst performer among the top 10 cryptocurrencies by market cap this week. The coin lost 7% of its value in the last seven days and gave up its spot in the market list to BNB.
The poor performance has seen XRP struggle to hit the $3.0 mark despite Bitcoin racing to a new all-time high and Ether surpassing $4,700. With Bitcoin’s rally currently undergoing a correction, XRP could face further downside movement in the near term.
The futures Open Interest (OI) continues to be poor, suggesting that traders are not optimistic of an XRP rally in the near term. The poor performance could see XRP drop below its crucial support level in the near term.
XRP could dip below $2.70 as the bearish trend continues
The XRP/USD 4-hour chart is bullish and efficient despite XRP losing 7% of its value this week. Its price faced rejection from the upper trendline boundary since last week and has lost 8% of its value by Thursday. The poor performance saw XRP close below the 100-day Exponential Moving Average (EMA) at $2.85. At press time, XRP is trading at $2.808 per coin.
The RSI of 36 is below the neutral level of 50, indicating bearish momentum is gaining traction. If the bearish trend continues, XRP could enter the oversold region soon. Furthermore, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover earlier this week, flashing sell signals in the near term.
If the correction persists, XRP could extend its decline towards the daily support at $2.70. A further downward movement could see XRP drop to the $2.68 low in the near term.
However, if XRP recovers, it could extend its rally towards the key resistance level at $3.0 over the coming hours and days.
