XRP Resists Downtrend, Eyes Potential Recovery Despite Bitcoin’s Slide

• XRP faces volatility as Bitcoin’s decline below $80,000 leads to a market-wide sell-off.
• The token holds above key support at $2.12, with potential to rebound toward resistance levels at $2.32, $2.61, and $3.35.
• Market sentiment remains highly influenced by Bitcoin’s price action, with traders awaiting XRP’s recovery.

Ripple (XRP) has been grappling with significant volatility as it faces a sharp correction in the wake of Bitcoin’s dramatic drop below the $80,000 mark. The decline in Bitcoin triggered a widespread sell-off across the entire cryptocurrency market, instilling fear among investors and pushing altcoins, including XRP, to experience steep losses.

After reaching a recent high of $3, XRP saw a sharp decline, largely influenced by macroeconomic factors and the ongoing pullback in Bitcoin’s price, which has weighed heavily on the broader market sentiment. Over the past week, the token is dwon by almost 20% while in the last 30 days the token is down by 12% mirroring the overall bearish price trajectory in the market.

Despite the turbulence, XRP is currently holding above a crucial support level, preventing further downside for now. At the time of writing, the token is trading at $2.08, reflecting a 1.95% decline in the past 24 hours. The token’s 24-hour trading volume stands at $13.54 billion, with a market capitalization of $120.52 billion.

Source: CoinMarketcap

XRP Forms Descending Channel, Eyes Breakout

From a technical standpoint, XRP has formed a descending channel pattern on the daily timeframe after consolidating between $2.00 and $3.00. This pattern typically signals a period of accumulation before a potential breakout.

If the token holds above the current support at $2.12, a rebound could push prices toward key resistance levels at $2.32, $2.61, $2.90, and ultimately, $3.35. However, a breakdown below this support could open the door for further downside.

XRP Resists Downtrend, Eyes Potential Recovery Despite Bitcoin’s Slide 4

Market sentiment remains highly dependent on Bitcoin’s price action, as further weakness in BTC could put additional pressure on altcoins. Traders and investors are keeping a close watch, anticipating whether the token can sustain its support and stage a recovery in the coming sessions.

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