The crypto market is under selling pressure in the early Sunday session, and XRP, the fourth-largest cryptocurrency by market cap, is taking a hit.
According to CoinMarketCap data, XRP’s 24-hour trading volume has plunged by 56% to $2.25 billion as a broader crypto market drop rattles investor sentiment.
The drop in XRP trading volume might reflect growing caution among traders, with many staying on the sidelines amid market uncertainty. XRP, which recently saw a rebound to $2.17, is battling to maintain momentum as selling pressure returns to the market.
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The current drop in volume, which may indicate waning interest from short-term traders, raises questions about what might come next for XRP price.
As it is, eyes are on the crucial $2 level, which XRP must hold so as not to validate a bearish head and shoulders pattern.
XRP in red amid market sell-off
The crypto market faced fresh selling pressure in the early Sunday session as traders took profits from the recent rebound and considered macroeconomic developments in the past week.
The overall crypto market capitalization fell 1.04% to $2.65 trillion, with the majority of the crypto assets, including XRP, in red.
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XRP is currently approaching $2, reaching intraday lows of $2.08. The drop follows profit-taking after XRP rebounded for three days at a stretch from April 3, reaching highs of $2.17 consequently.
What comes next?
At the time of writing, XRP had fallen 1.67% in the last 24 hours to $2.09 and was down 4.09% weekly.
The RSI at 42 might increase the risk of a break below $2. If this occurs, XRP might form a bearish head-and-shoulders pattern. XRP eyes support at $1.84, which coincides with the daily SMA 200, but if that level is broken, the slide could continue to $1.77 and then $1.27.
Buyers face a difficult task in order to avoid a breakdown. They must quickly drive the price over the 50-day simple moving average at $2.34 to pave the way for a relief rally to $2.6 and beyond.
