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XRP is on thin ice while moving around $2.07, down around 3% for the day once again and clearly facing some issues that might trigger a move below $2. The downward volume is also moving up, which means that bears are ready to increase the selling pressure on the market and push XRP even lower.
Technically speaking, since the early 2025 peak, XRP has been trading inside a long descending channel, with lower highs and lower lows consistently forming. The 50 and 100 EMAs, which are currently acting as resistance, have already seen a decline in value. The 200 EMA, which is located close to $1.94-$1.95 and represents a significant horizontal support zone from January, is the only discernible cushion that is left for XRP. The current price action, however, indicates that this level is being besieged.
The $2 area has been tested repeatedly with no discernible bounce, pointing to buyer exhaustion. On the other hand, the rising volume of red candles indicates that the market is being taken over by sellers. This is not merely a standard correction; rather, it poses a structural risk to the short-term bullish argument for XRP. With the Relative Strength Index (RSI) at about 38, XRP is in a weak momentum zone.
The lack of strength indicates that a relief rally may be difficult to come by unless significant buying volume intervenes, even though it is not yet in oversold territory. The $1.94 zone will become the last line of defense if XRP loses the $2 psychological level.
A breakdown below this might pave the way for a more significant correction, perhaps heading as low as $1.70 in a bearish scenario. If a significant reversal does not happen right away, XRP may be headed for a 24-hour decline below $2 as trader confidence wanes.
Vladislav Sopov
Dan Burgin