XRP Price Prediction: Pullback Seeking Support Level, Weak Buying Pressure May Trigger Further Fall

XRP has started to decline after reaching a seven-year high and is currently seeking a new support area. Analysis indicates that although the pump was driven by strong buying pressure, the decrease in Trading Volume and the overall bearish sentiment in the market have put XRP at risk of a pullback in the short term. The potential price movements will unfold under the contest between long positions and short positions, with key support zones possibly becoming the next opportunity for positioning.

XRP rises and then falls back, market sentiment turns cautious XRP recently broke through the 2024 high, with the price rising above $3.6, but then it fell back, indicating a weakening of the market's long positions. This wave of rise was mainly driven by a large amount of buying, but was immediately met with selling pressure, causing the longs to be "trapped" in the high range.

Trading Volume Decline Reveals Insufficient Buying Confidence Cryptocurrency analyst Thecafetrader pointed out that during this rise, the Trading Volume significantly decreased, reflecting a lack of investor confidence. When XRP first broke the $3 barrier in 2024, the daily trading volume exceeded $78 billion; however, during the current rise above $3.6, the highest Trading Volume was only $41 billion. This discrepancy indicates that market participation has clearly diminished.

Selling pressure eases but still has rebound opportunities Despite weak buying pressure, analysts believe the market lacks significant "real selling pressure," meaning large-scale active selling has not yet occurred. This leaves room for a future rebound in XRP prices. If the market warms up, the price is expected to challenge the $4.64 level again.

If buyers fail to support, multi-level drop targets emerge From a short positions perspective, if strong buying pressure does not intervene in time, XRP may fall back to the key level of $2.95. Analysts have listed several potential downward support targets:

(Source: TradingView)

• The first support level is at $3.13
• If it falls below, it will test the $2.95 range
• If it further declines, it may fall back to $2.15-$2.30, which is referred to as the "ideal entry price".
• May ultimately reach the range of $1.60-$1.93, referred to by analysts as the "super value buy zone"

Market trends will be determined by investor confidence The future direction of XRP prices depends on whether long positions regain confidence. If buying activity becomes active again, the market may see a new round of pump. However, if confidence continues to weaken, XRP may enter a medium-term adjustment cycle, revisiting multiple low support levels.

Conclusion: The price of XRP has pulled back after breaking through the high point, reflecting a weakening of market momentum in the short term. In the struggle between insufficient buying and unclear selling pressure, XRP is facing a critical point of balance between long positions and short positions. For cryptocurrency investors, the key support range may present an ideal opportunity for the next round of positioning, and the subsequent trend still requires close attention to Trading Volume and changes in market sentiment.