“Bubble Has Burst”… XRP Breaks Key Support Level Amid Massive Sell-Off

▲ XRP / ChatGPT-generated image

XRP is facing intensifying downward pressure after failing miserably to break through the strong resistance level of $1.680 and collapsing toward the $1.550 support level.

According to cryptocurrency media outlet NewsBTC on February 16 (local time), XRP recently failed to surpass the $1.680 high and entered a negative zone following a sharp downward correction. Moving in tandem with declines in Bitcoin and Ethereum, XRP successively lost the $1.620, $1.600, and $1.550 levels, effectively entering a technical bear market.

On the hourly chart, the key ascending trendline formed near $1.4880 broke down, significantly weakening buyer sentiment. The price slipped below the 61.8% Fibonacci retracement level of the upward move from the $1.3475 low to the $1.6713 high, increasing downside pressure. Currently, XRP is barely holding above the $1.450 level and near the 100-hour Simple Moving Average (SMA).

Bulls are attempting a modest rebound while defending the $1.450 area, but reclaiming the primary resistance at $1.510 remains urgent. If XRP manages to break above and stabilize over $1.510, it could lay the groundwork for a rally toward $1.5450, $1.580, and potentially $1.620. However, with overhead resistance remaining extremely strong, analysts believe any rebound is likely to be limited unless supported by sufficient buying momentum.

On the downside, $1.440 is acting as a short-term critical threshold. If this level collapses, there is a high risk of a sharp drop toward $1.4240 or the 76.4% Fibonacci retracement level. Should XRP close below $1.4240, prices could fall past $1.400 and extend losses toward the $1.360 and $1.340 support levels, potentially triggering a large-scale sell-off. Investors are closely watching whether the current correction is merely a pause for breath or a precursor to a full-scale crash.

The wave of sell orders that emerged just below the $1.680 peak dealt significant damage to retail investors and acted as a catalyst for increased market volatility. If XRP fails to break through the $1.510 resistance zone, a new downward wave could begin, potentially shifting the overall market trend decisively bearish. As profit-taking by whale investors continues, the inflow of strong spot buying will be the key factor in preventing further sharp declines and defending price levels.

Disclaimer: This article is for investment reference only and we are not responsible for any losses resulting from investment decisions based on it. The content should be interpreted for informational purposes only.