XRP has dipped to critical support levels, signaling a bear market according to analysts as technical indicators hint at further declines.

XRP’s retreat starting on Monday has raised uncertainty in the market as it reaches a critical support level. XRP has lost around 30% from its yearly high, dropping to $2.40, officially entering a bear market. This decline, coupled with Bitcoin remaining below $100,000, suggests broader weakness in the crypto market. The crypto fear and greed index has dropped to 38, entering the “fear” zone, while the altcoin season index is also trending downwards.

Technical analysis indicates XRP’s price may fall further. The daily chart shows the price dropping below the 50-day and 100-day moving averages, indicating sellers are dominating the market and the downward trend persists. Additionally, XRP has formed a head and shoulders pattern, often signaling a decline. The current price of XRP has fallen below the sloping neckline, aligning with the Murrey Math Lines, pointing to a strong pivot reversal point. This suggests a major breakdown is imminent, with a potential decline to $1.79 for XRP expected in the near future. Breaking below this level could trigger more selling pressure, causing further price declines.

Moreover, XRP falling to the 61.8% Fibonacci retracement level at $1.6130 is also a possibility. However, if XRP rises above $2.735, marking a weak stop-reverse level, the current downtrend could be invalidated.