XRP is currently trading near $1.35, experiencing a 1.9% decrease today, although it is still up by 4.7% over the past week. The token is currently testing a crucial level that was significant heading into the weekend – last week’s key support zone around $1.355. It has slipped below this level, but the setup is not decisively broken yet.
An analyst tracking XRP’s structure noted that the token has been trading below its short and medium-term average price levels since Friday. This shift indicates a potential target of $1.25 if weakness persists, signaling a mildly bearish trend. However, wider support levels between $1.29 and $1.32 are still in place, and the selling pressure behind the pullback does not appear to be aggressive.
Despite a slight pullback in XRP’s strength relative to Bitcoin over the past week, it remains range-bound rather than trending downward, reflecting a similar pattern in XRP’s price action.
The upcoming Fed policy meeting on Wednesday adds complexity to the market landscape, with an 87% probability of a rate hike priced in. Historically, entering such a week with bearish pressure already factored in tends to result in a less negative reaction than entering it with excessive bullish sentiment.
Analysts also point out mixed order flow data, with funding rates dropping as new short positions accumulate. XRP seems to be trending towards negative funding, which could potentially set the stage for a bounce rather than confirming further downside.
While some analysts view the current setup as bearish, others like Analyst Ali Charts anticipate a potential breakout if XRP maintains the $1.31 to $1.35 support zone. A decisive close above $1.38 could confirm a bullish breakout and potentially lead to a target of $1.60.
In conclusion, XRP’s structure suggests a mild bearish outlook for the week ahead, but the absence of substantial support for a break below the $1.29-$1.32 range indicates a bounce from current levels as the more probable near-term scenario. The outcome of the Fed meeting may play a crucial role in determining XRP’s next move, in addition to market reactions.
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