XRP Approaches Critical Monthly Support Level After Recent Price Retreat
XRP is approaching the lower boundary of a five-month trading range, with key support levels remaining intact. Analyst Dom's chart analysis from May 7 highlights:
- XRP has recently broken above a descending trend line from January 16 at approximately $3.40.
- Three anchored Volume-Weighted Average Prices (VWAPs) provide critical support and resistance levels.
- The quarterly VWAP is at $2.2796, which rejected price last week, leading to a pullback.
- The monthly VWAP is currently at $2.0574, with XRP hovering just above it; a bounce could target the mid-$2.20s.
- The yearly VWAP is situated at $1.8731, acting as a significant structural level.
Key market behaviors include:
- Since December, XRP has ranged between $1.94 and $2.05, indicating a stable support zone.
- A decisive close below this range would indicate a bearish bias.
- XRP shows relative strength against other large-cap altcoins despite temporary weakness due to Bitcoin's dominance.
Technicians will monitor:
- The ability to maintain the $2.00 level as support.
- The potential for the monthly VWAP to turn from resistance into support.
Failure at these points could lead to a decline toward the yearly VWAP around $1.87. Current trading price for XRP is $2.20.
