XRP Price at Critical Juncture After 17% Monthly Drop, Key Support at $2.70 Under Pressure

XRP is trading at a pivotal technical level around $2.70 after suffering a significant 17% decline over the past month, with analysts closely watching whether the cryptocurrency can maintain crucial support or face further downside toward $2.30.

The digital asset currently hovers near the $2.70-$2.75 range, a level that previously served as resistance before the recent selloff. Technical analysts identify this zone as a critical Fibonacci 1.414 extension level that has historically marked important price reversals for XRP.

Support levels are clearly defined in the current market structure. Should XRP fail to hold the immediate $2.70 support, the next significant level lies at $2.50, followed by the more substantial $2.30 zone. This lower support aligns with the 50-day exponential moving average and a long-term ascending trendline that has provided crucial support since April.

The $2.30 level represents a convergence of multiple technical factors, making it particularly important for XRP's medium-term direction. A breakdown below this threshold could invalidate the current bullish setup and potentially drive prices toward the $2.00-$2.10 range.

Despite recent weakness, bullish indicators remain intact. XRP continues trading above both its 50-day and 200-day moving averages, while a recent "golden cross" formation suggests underlying strength. AI-powered prediction models suggest potential targets of $3.17 if current support levels hold and market sentiment improves.

For a bullish reversal, XRP must reclaim the $2.90-$3.00 resistance zone, particularly the psychological $3.00 barrier that has capped previous rally attempts. A successful break above this level could open the path toward $3.26.

The cryptocurrency's ability to defend the $2.70 support in the coming sessions will likely determine whether the recent monthly decline represents temporary consolidation or the beginning of a deeper correction phase.