XRP Price at a Critical Crossroads as Bulls and Bears Battle for Dominance
XRP’s inclusion in the crypto strategic reserve is regarded as a monumental step that could enhance the strength of the platform. Consequently, the price of XRP experienced a significant upswing, surpassing key resistance levels at $2.27 and $2.89. However, the bears appear to have taken control around the $3 zone, leading to a price rejection, and the confirmation of tariffs on Canada and Mexico further dragged the levels down by more than 20%.
Currently, the bulls are making a concerted effort to elevate the price above the previous day’s close, but the bears are exerting considerable pressure, keeping the price confined below $2.35. So, what lies ahead? Will the XRP price lose the crucial support at $2, or will it reclaim its lost dominance and face immediate resistance? The price had broken above previous lower highs and lows, but following the rejection, the token seems to have reverted to the same pattern. The bears appear to maintain a firm grip over the rally, indicating potential bearish signals for the cryptocurrency. Moreover, an entry into the demand zone is expected to attract significant liquidity, which is essential to push the price beyond $2.8. However, the technical indicators have turned bearish, suggesting that the lower target zone between $2 and $1.96 has been activated.
The daily chart of XRP indicates that the bulls are defending the local support at $2.272, but from a broader perspective, the bears seem to be preparing for a major price action. The price has reached the lower bands of the Gaussian channel, which has already turned bearish. A drop below this range may confirm that the price is reaching its lows. Meanwhile, the MACD, which is in the negative range, is on the verge of experiencing a bearish crossover after a minor bullish flip.
Therefore, the XRP price continues to remain under substantial bearish influence and may eventually decline to $2 or slightly below this range. On the other hand, a rise above $2.5 could delay the bearish momentum, while a surge above $2.8 might eliminate the possibility of further bearish movement. Recently, the SEC has ceased investigations and lawsuits against multiple crypto platforms, which has led to speculation regarding a resolution of the lawsuit with the SEC. However, analysts and XRP proponents believe it may take another couple of months, and until then, the price is expected to sustain a slow yet steady rally.