Ripple’s XRP is down by more than six percent and is trading at $2.22 level at the time of writing. XRP’s price is at a crossroads and has lost the majority of the gains made in the last seven days. All of the top 10 coins are trading in red, with Solana and Dogecoin recording double-digit losses.

Analysts are speculating that XRP might be in the midst of a larger correction, following a strong rally earlier this month. The price could be undergoing a consolidation phase, which may either be part of a larger corrective pattern or a more extended sideways movement.

Potential Scenarios, Key Resistance and Support Levels

Resistance Zone

The immediate resistance for XRP is between $2.30 and $2.53. If the price reaches this range, it may face selling pressure and could potentially reverse to the downside. Traders should be cautious if the price approaches this area.

Critical Support Level

The key support level to watch is $1.96, where a previous low was formed earlier in December. If XRP drops below this level, it could trigger further selling, potentially pushing the price lower into a range between $1.39 and $1.80.

Consolidation Phase

XRP could be in the midst of a consolidation phase, where the price moves sideways within a defined range. This could be a correction after the recent rally. If XRP remains above the $1.96 level, it could eventually break higher, potentially testing the resistance zone between $2.30 and $2.53.

Downside Risk

If XRP breaks below the $1.96 support, it could enter a deeper correction. In this case, the price might move towards the lower support zone between $1.39 and $1.80. This is a crucial level to monitor for any potential reversal.