Ripple’s XRP has been facing significant challenges in recent days as it attempts to recover from a prolonged period of sideways price action. Despite gaining more than 1% in the last 24 hours, XRP is still grappling with key resistance levels that have kept the altcoin from experiencing a major breakout. Analysts are cautioning that the coin remains in the midst of a bearish divergence, signaling a potential downturn if support levels fail to hold.

XRP’s Struggle for Momentum

Currently, XRP is working to bounce back above important resistance levels, notably the $2.30 mark. While the altcoin has experienced some short-term upward movement, the broader market sentiment suggests that a sustained rally is unlikely in the immediate future. The latest price action shows that XRP has gained just over 1% in the last 24 hours, yet this increase is not enough to signify a major shift toward a bullish trend.

The primary concern for XRP remains the developing bearish divergence, which has been ongoing for several months. This pattern is characterized by lower highs in price action, coupled with declining momentum indicators. Typically, such a divergence indicates that the coin’s upward momentum is weakening and could soon reverse into a downtrend. Despite some signs of oversold conditions providing short-term support, there has been no definitive indication of a larger bullish rally taking hold.

Support and Resistance Levels

Looking at XRP’s 8-hour chart, the altcoin is attempting to hold support between the $2.25 and $2.30 range. This area was previously a resistance zone, and the price is now testing it as potential support. However, XRP briefly dipped below this level, reaching as low as $2.23-$2.24, before trying to regain its footing. If the price fails to maintain support in this range, it could flip back to resistance, and XRP may experience further downward pressure.

If XRP does move lower, the next significant support zone lies between $1.95 and $2.05. This area is crucial for bulls looking to maintain the coin’s price action above the $2 mark. A drop below $2 could signal a more significant downturn for the token, potentially leading to further consolidation or even a deeper correction.

On the other hand, if XRP is able to bounce back and hold support above $2.30, the immediate resistance lies just below the $2.50 level. Stronger resistance can be found between the $2.65 and $2.80 zones, which will act as key barriers for any potential bullish breakout. However, it’s important to note that expectations should remain tempered, as a major price breakout in either direction seems unlikely in the short term.

Sideways Consolidation and Market Sentiment

Over the past month, XRP has been stuck in a narrow range, bouncing between its established support and resistance levels. This sideways movement has led to a period of consolidation, where price action lacks significant direction or momentum. In such phases, traders often lose interest, which can lead to a decrease in trading volume and further stagnation in price movement.

While these periods of quiet market action might seem uninspiring, they can often precede substantial price movements. Historically, periods of consolidation in the cryptocurrency market have been followed by breakout phases, where price action shifts decisively in one direction. For XRP, this could mean either a breakout above the $2.50 level or a breakdown toward the $2 or lower levels.

Conclusion

XRP continues to test critical support and resistance levels as it navigates a bearish divergence and sideways market movement. The altcoin is holding steady around the $2.25-$2.30 range, but if it fails to break through key resistance, further downward movement could occur, potentially pushing XRP toward the $2 mark or lower. Traders should monitor these levels closely, as periods of consolidation often precede larger market shifts. However, the current lack of clear momentum suggests that patience and caution will be essential for those looking to trade XRP in the near future.