XRP price drops into the red zone despite Ripple Labs' new partnership with Guggenheim

While most of the top cryptocurrencies, Bitcoin included, seemed to be staging a recovery and returning to the green, XRP price slipped into

XRP price slipped into the red zone despite most of the top cryptocurrencies, Bitcoin included, seeming to be staging a recovery and returning to the green.

The token dropped to $2.28 by press time, with the sentiment in the markets improving, this unexpected drop is leaving many traders caviling.

However, there is still some good news for XRP’s holders, as they believe it is currently capped above $2.25, which is a crucial fibonacci retracement level and an important support area.

XRP historically tends to rebound from this region—proof that markets do behave in a recurrent manner. For the time being, this zone is likely to act as a buffer for the token.

On-chain activity is starting to pick up as well. Supporters are particularly focused on June 16, a date that has become synonymous with possible resolutions in the Ripple vs SEC saga.

Quite a number of people seem to believe that a favorable outcome could serve as a very strong catalyst for XRP’s next move.

XRP Price Prediction: What’s Next?

From a technical point of view, XRP is trying to recover from a key support zone in the range of $2.10 and $2.25. Immediate resistance levels are marked at $2.34 and $2.44, with stronger resistance present near $2.60.

Analysts are looking for a possible double bottom pattern forming on the charts, which would be a bullish pattern if confirmed in the coming days.

On shorter timeframes, particularly the 8-hour chart, XRP is showing signs of a bullish divergence. While the price has slipped, momentum indicators like the RSI are quietly trending higher, suggesting a possible price bounce in the near term.

However, one wildcard could shake things up — the upcoming U.S. CPI inflation data set to be released within the next 24 hours. Depending on how those numbers land, short-term market sentiment across crypto, including XRP, could shift quickly.