- XRP faces strong resistance after failing to hold momentum above key levels.
- Fibonacci retracement hints at a potential bounce, but bearish pressure remains.
- Traders eye the $2.00 level as a make-or-break zone for XRP’s next move.
XRP’s recent rally appears to be losing steam as the price struggles to maintain its footing above $2.50. After a strong push that saw it briefly touch $3.40, sellers quickly stepped in, leading to a series of lower highs and an overall loss of momentum. This downward pressure seen in the TradingView data has now brought XRP back toward the $2.10–$2.20 region, which previously acted as a support zone.
If XRP bulls can hold this area, it could provide the foundation for another move up. However, failure to maintain this level may lead to further declines, with the next key support sitting near $2.00. A decisive breakdown below this could open the door to an even deeper correction, potentially revisiting levels closer to $1.80.
Bulls Lose Grip as XRP Pulls Back
XRP is currently hovering around the 50% retracement of its previous rally. This is a level that often determines whether a trend reversal or a continuation move will occur. If XRP manages to hold here, it could stage a recovery toward $2.60 or even $2.80, where the next resistance levels lie.
However, if sellers maintain control, XRP could fall toward the 61.8% Fibonacci level, which aligns with the $2.00–$2.10 range. Historically, this level has acted as a key pivot point for price reversals, making it a critical zone to watch in the coming days.
Market Indicators Signal Increased Volatility
XRP’s Bollinger Bands are widening, suggesting that volatility is ramping up. The price recently tested the lower band, indicating that it could be oversold in the short term. This might lead to a temporary bounce, but without strong buying pressure, any rally could be short-lived.
If bulls step in and reclaim $2.50, it would signal renewed momentum, potentially allowing XRP to retest its recent highs. However, if bearish sentiment persists, the market could see increased selling pressure, pushing the price toward lower supports.
XRP was originally created by Ripple Labs as a digital asset designed for fast and cost-efficient cross-border transactions. Unlike many cryptocurrencies, XRP doesn’t rely on traditional mining but instead uses a consensus ledger mechanism to validate transactions, making it one of the most scalable blockchain solutions in the market.
For now, all eyes remain on the $2.00 level. If XRP manages to hold above this zone, a rebound could be in play. But if it breaks, traders should brace for a potential retest of lower support levels.
