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XRP Recovers as Traders Defend $2 Support

XRP price dropped to $1.95 in early trading before bouncing back to $2.19 as the U.S. session opened.

This recovery coincided with CME Group’s announcement of Solana futures, adding fuel to speculation that altcoin ETFs could be next in line for regulatory approval.

Derivatives data supports the bullish sentiment. Despite XRP’s 24.4% price drop over the past five days, open interest declined by just 19.3%, from $3.73 billion to $3.01 billion.

This suggests that traders are holding onto long positions, betting on a price rebound.

The Fibonacci retracement levels on the daily chart highlight critical support and resistance zones.

XRP is currently hovering near the 0.786 retracement level at $1.94, a historically strong support area.

Below that, the 1.618 extension at $0.98 looms as a worst-case scenario if bearish momentum intensifies.

XRP/USD 1-day price chart. Source: TradingView

However, failure to hold above $2 could set off a deeper decline, with $1.94 standing as the last line of defense before bears take full control.

Analyst Flags Trouble—XRP Price Breakdown to $1.24?

Trader Josh Olszewicz is sounding the alarm on a bearish Head and Shoulders (H&S) pattern forming on the daily chart.

This pattern, if confirmed, typically signals the end of an uptrend and the start of a deeper correction.

The key level to watch is the neckline at $2. If XRP loses this support, the next stop could be $1.94.

And if the selling pressure intensifies, Fibonacci extensions point to a possible drop all the way to $1.24.

XRP H&S and bearish kumo breakout watch | Source: CarpeNoctom/X

Olszewicz also highlighted a bearish kumo breakout under the Ichimoku Cloud, a sign that momentum is weakening.

“1D XRP: H&S + bearish kumo breakout watch,” he posted on X, hinting that the downside risk shouldn’t be ignored.

While traders focus on short-term moves, a controversial valuation model has surfaced, claiming XRP could eventually hit $18,000 per coin.

The report, published by Valhill Capital, argues that if Ripple dominates global financial transactions, XRP’s value could skyrocket.

If ETF speculation continues driving demand, XRP price could push higher. But if the $2 level breaks, the bearish signals will come into play, and prices could slide further.

Litecoin (LTC) price saw a noticeable increase in the number of short-term traders.

It spiked by over 12% in the past month, reaching approximately 560,000 addresses.

This surge was likely linked to the buzz around potential Litecoin ETF approvals, fueling speculative trading activities.

Analyzing the trajectory, the count of addresses dipped initially in late January.

It went down to a low near 500,000 before rebounding strongly in early February.

The fluctuation suggested a volatile response from traders to news and market sentiment.

This often resulted in quick entries and exits from the market.

With the rise in Litecoin short-term trading, the potential scenarios for Litecoin’s price are mixed.

On the one hand, the increased trading activity could lead to higher volatility,

There’d be sharp price movements if the ETF news continues to stir interest.

Conversely, without substantial follow-through or approval of the ETF, the inflated trader numbers might not sustain, possibly leading to a sharp correction.

Historically, similar spikes in trader activity have preceded both rallies and corrections, depending on broader market conditions and investor sentiment.

Current indicators show a clear increase in engagement. So the next move for Litecoin price could hinge critically on further developments around ETF prospects.

Why Litecoin Price Potential Drop is Key?

Looking at the Litecoin price action, the chart revealed a critical juncture at $124.23.
It looked poised just above a significant support zone at $116.06, with potential dips projected towards $104 – $108.

This price action aligned closely with key resistance levels previously observed at $151.60.

That indicated a robust trading range that’s influencing current movements.

RSI, currently at 60.77, suggested that while LTC was neither overbought nor oversold, it leans towards bullish territory, indicating slight buyer momentum which could temper a rapid decline.

However, historical data from previous months shows fluctuation between support levels of $101.84 and $77.71.

These signify the areas could again play crucial roles in upcoming price actions.

Price projections based on the RSI and recent support tests suggested two scenarios: First, if buyer momentum continues as indicated by the RSI staying above the midline, Litecoin price might stabilize or bounce back towards the upper resistance near $133.92.

Conversely, a weakening RSI, potentially triggered by broader market sentiment or negative news, could push prices down to revisit the $104-$108 support zone, a level not seen since the early rallies of late 2024.

The MACD indicator, showing a convergence around the signal line with a slight bearish bias, supports the potential for downward price action in the short term.

This could lead to testing lower support levels if sell-offs increase, aligning with historical patterns where significant support tests have led to either substantial rebounds or further declines.

In sum, Litecoin price’s immediate future might see it testing lower supports due to current technical setups unless sufficient buying pressure emerges to counteract the bearish trends observed.

The next few weeks are crucial to determine if the current support holds or if LTC will descend further, testing the resilience of lower price thresholds.