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The crucial $2 support level is once again in the vicinity of XRP, and the charts suggest that a breach could happen sooner than expected. XRP is now down more than 5% on the daily chart at about $2.06, following days of battling to keep momentum above important moving averages.
This sharp decline raises the possibility that the long-standing $2 threshold will not last much longer. Technically speaking, the signs are extremely worrisome. The 200 EMA, which is presently at $1.94, is the last line of defense for XRP after it broke below the 50 and 100 EMAs. In the past, dropping below this level has signaled the start of a faster decline.
The apex of the descending triangle pattern, which has been developing since January, is also approaching. This is a common prelude to a breakdown, when support erodes under stress. The story of volume is similar. Even though there have been brief spikes in buying interest, there has not been a consistent volume increase to support a recovery. Rather, XRP is still experiencing increased sell pressure, which is consistent with the declining RSI (Relative Strength Index), currently hovering just above 37 and approaching oversold territory.
This shows how strong the bearish trend is, even though it might also point to a possible rebound. The next significant support is located between $1.85 and $1.80, a region that was tested in early November 2024 - if XRP significantly breaks below $2 and the 200 EMA is not maintained.
A decline to that zone might hasten the decline by causing long positions to unwind and igniting additional panic. Regaining the $2.30-$2.40 range and closing above it with significant volume are necessary for XRP to buck this trend, which does not seem likely in the absence of a more widespread market catalyst. Right now, XRP's hold on the $2 mark is waning, and if bulls don't intervene quickly, it might be time to bid that crucial psychological barrier farewell.
Vladislav Sopov
Dan Burgin