XRP’s recent Sunday rally was short-lived, as the cryptocurrency has retraced its gains, leaving investors questioning whether further declines are ahead or if the asset will bounce back. The price is now approaching a key support level that could determine the next major move.
XRP’s Price Action
On Sunday, XRP surged to a weekly high of $0.68, fueled by bullish momentum across the crypto market. However, the rally quickly lost steam, and XRP has since dropped back to $0.62, wiping out most of its recent gains.
The retracement follows a broader market cooldown, with Bitcoin and Ethereum also facing sell-offs after recent highs.
Why Is XRP Falling?
Several factors are weighing on XRP’s price:
- Profit-Taking: Investors who bought during the rally are cashing out.
- SEC Lawsuit Uncertainty: Ongoing legal battles between Ripple and the US SEC continue to create uncertainty.
- Market Sentiment: Bearish momentum across the broader crypto market is pulling altcoins lower.
Key Support Level to Watch
The $0.60 – $0.62 zone is emerging as the most critical support level for XRP. This area has acted as a strong demand zone in recent weeks, with multiple bounces occurring from this range.
If XRP holds above $0.60, it could spark another rally toward $0.70 and beyond. However, a breakdown below this level might trigger further losses toward $0.55.
On-Chain Signals
On-chain data shows that large XRP holders (whales) have been accumulating during the dip — a potential bullish sign for long-term price action. Additionally, XRP’s network activity has remained stable, with consistent daily transactions.
What’s Next for XRP?
- Bullish Scenario: If XRP holds $0.60, a breakout above $0.68 could trigger a move toward $0.75 – $0.80.
- Bearish Scenario: A break below $0.60 could see XRP retesting $0.55 or lower.
Conclusion
XRP’s next move will largely depend on whether the $0.60 support level holds. While the broader market remains volatile, long-term investors are still showing confidence in XRP’s potential — especially if Ripple’s legal battle ends in a favorable outcome.
About The Author
