Ella Mitchell 
XRP has faced significant downward pressure after failing to hold above the VWAP bands, dragging its price down to approximately $2.20. The Volume Weighted Average Price (VWAP) is a crucial indicator for traders, helping to determine the fair market value of an asset over a given period. However, XRP’s recent price action indicates that bulls have struggled to maintain control, with critical support levels now being tested.
According to an analysis shared on March 9, 2025, by crypto analyst Dom (@traderview2), the XRP market has entered a critical test zone, where the $2.20 level is acting as a crucial line of defense. Historically, this level has shown significant price reactions, and the coming hours will be vital in determining whether XRP can hold this support and stage a recovery.
VWAP Bands: Key Levels That Bulls Failed to Maintain
The VWAP bands play a crucial role in identifying price trends and market strength. Based on the latest chart analysis, XRP failed to sustain itself above these key bands, particularly the 3-month and 1-month VWAP lines, which are crucial for gauging medium-to-long-term price trends.
- 3-Month VWAP: Currently sits at 13.82%, serving as a critical threshold that XRP previously attempted to stay above but ultimately failed.
- 1-Month VWAP: At 11.6%, this level also acted as a significant resistance zone, further weakening XRP’s bullish outlook.
With XRP now trading at $2.20, traders are closely watching whether this level can hold and provide enough support for a potential rebound. If the price remains below the VWAP bands, it could signal further downside, whereas reclaiming them would indicate renewed bullish momentum.
Election VWAP: A Unique Factor Influencing XRP’s Price Action
An additional complication influencing XRP’s current situation is the Election VWAP, a specialized VWAP level identified by Dom’s analysis. This metric follows price action around significant market events, such as elections or key macroeconomic developments, which often lead to increased volatility.
The Election VWAP currently aligns with the $2.20 level, further reinforcing its importance as a psychological support zone. If XRP holds this area, it could create favorable conditions for a potential bounce. However, a breakdown below this level could lead to further selling pressure, possibly pushing the price lower.
What’s Next for XRP? Key Scenarios Based on VWAP Analysis
Given the current market dynamics, here are two possible scenarios for XRP based on VWAP analysis:
Bullish Scenario:
- If XRP can hold above $2.20 and reclaim the VWAP bands, traders may see a strong push toward $2.50 or higher.
- A successful break above the 3-month VWAP at 13.82% could reignite bullish momentum, leading to further gains.
- Increased buying volume at this level would confirm that demand is outweighing supply, signaling a potential reversal.
Bearish Scenario:
- A failure to hold above $2.20 and continued rejection from the VWAP bands could send XRP lower.
- If support fails, the next critical downside target could be $2.00 or lower, depending on overall market conditions.
- Traders may need to look for additional support zones before expecting a recovery.
Conclusion: Monitoring VWAP Bands for XRP’s Next Move
As XRP struggles to maintain above key VWAP bands, its ability to hold the $2.20 support level will be crucial in determining its next price movement. The VWAP indicator remains an essential tool for traders, offering insight into market trends and potential reversals.
If XRP can reclaim the VWAP bands, bullish momentum could return, pushing prices higher. However, if bearish pressure persists, further declines may be inevitable. With the Election VWAP adding to the complexity, the next few hours will be pivotal in shaping XRP’s market direction.
Traders should keep a close eye on price action, volume trends, and VWAP levels to make informed decisions in this volatile market environment.
