XRP struggles to stay above key levels, currently trading 50% below its yearly high.

The cryptocurrency market is once again under pressure as XRP struggles to stay above key resistance levels. Now trading at $1.82, it’s down nearly 50% from its yearly high

Billionaire investor Ray Dalio has issued a stark warning about an impending economic collapse due to soaring global debt levels. His comments come as U.S. stock markets continue to struggle with substantial losses, wiping out trillions in value.

Meanwhile, XRP is struggling to stay above key levels and has seen a nearly 50% drop from its yearly high, currently trading 50% below.

Its recovery efforts may be hindered by bearish technical patterns that suggest further drops in the cryptocurrency price.

As the cryptocurrency market continues to face headwinds, recent data from Glassnode indicates that Bitcoin (BTC) has seen a 7% decline in price over the past seven days.

This downturn has led to a $1.5 trillion wipeout in the crypto market, with several major tokens like Ethereum (ETH), Binance Coin (BNB), and Cardano (ADA) also reporting double-digit percentage losses.

Despite the broader market weakness, XRP has managed to maintain its position in the top five cryptocurrencies by market capitalization.

However, the token's price at $1.82 is still a significant 48% lower than its yearly high of $3.43, which it reached on January 6.

If the U.S. economy weakens further, as Dalio’s concerns indicate, then XRP could be in for a rough ride.

On the other hand, there are positive signs that could help drive up demand for XRP.

Ripple Labs, the company behind XRP, is working to improve global payments and compete with the SWIFT system, which banks currently use for transactions.

At the same time, the Securities and Exchange Commission (SEC) is reviewing several applications for XRP exchange-traded funds (ETFs).

If approved, these ETFs could bring in big investors and drive up XRP’s value.

In a recent prediction, Standard Chartered predicts that XRP could surpass Ethereum in market capitalization within five years, with its price possibly reaching $12.50 by 2028.

However, in the short term, the technical outlook for XRP remains bearish.

As of 07:38 ET (11:38 GMT), XRP was trading down 7% in the last 24 hours at $1.82, with a market cap of $105.9 billion, according to data from Benzinga Pro.

Key Support Levels To Watch

On the chart, XRP has formed a head and shoulders pattern, a technical indicator often associated with potential price declines. The “head” of this pattern is at $3.43, with “shoulders” around $3.

The price broke down below the neckline at $1.9195, which is also the 50% Fibonacci retracement level. This move suggests that the price may continue to drop further.

The next support level to watch is around $1.062, which is the 61.8% Fibonacci retracement level.

If the price breaks below this level, then it could continue to decline towards the next major support level at $0.8.

However, if the price manages to close above the neckline at $1.9195, then it could start to trade sideways or move higher.