After a rejection from $2.2 at the start of the weekend, the XRP price is now struggling to regain its momentum. This is especially hard given the fact that the altcoin saw the rejection from a major supply zone, and this has dealt a blow to the bullish momentum. This rejection doesn’t bode well for the cryptocurrency, as from here, it is likely that it will suffer further bearishness before the bulls are able to pull back up.
Turning Bearish At The Supply Zone
A crypto analyst, Frank, on the TradingView website revealed the supply zone where the XRP price was rejected from. This supply zone was at $2.27, and the bears pushed down the price back below $2.2 from here. However, this singular rejection from this zone is not the only cause for concern.
As the analyst points out, there are also repeated rejections that are now forming a lower high setup amid distribution. “This LuxAlgo-visible range marks a clear area of institutional interest and possible distribution,” the post reads. In this case, it suggests that the XRP price still has a long way to go downwards.
Some of the major things that the crypto analyst points out include the fact that in addition to the rejection candles that are already forming on the supply zones, there is also the lower high formations that suggest bears are gaining control. Furthermore, with different important news events expected from the United States between May 5 and 9, there is expected to be more volatility for the XRP price as the broader crypto market begins to respond.
Targets For The XRP Price
With the bearish headwinds dominating the XRP price, there are a number of targets that have been suggested by the crypto analyst. The first major target if the altcoin were to lose the $2 support level is $1.95. This is supposed to serve as the key level for a bounce, or for a breakdown in price if bears continue to dominate.
Below this support level it the next demand zones. These lie at $1.60 and $1.69, meaning that a break below $1.95 would be caught at this level. This is where the analyst sees high volume nodes due to previous reversals.
Nevertheless, there is still a chance for the bulls to actually turn the tide in their favor once again. The most important thing would be to push the XRP price back above the supply zone which triggered the rejection in the first place, which is $2.27. A break above here would be confirmation of an upward continuation, especially if volume begins to spikes and there is a shift in momentum, as the crypto analyst explains.
Chart from TradingView.com
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