Critical support levels are being reached by XRP once more, and if the current trend continues, the psychological $2 threshold might not hold for very long. The asset has entered a descending phase after being decisively rejected at the $2.20 resistance zone, missing out on earlier momentum that suggested a stronger breakout.
When XRP touched the upper edge of a descending triangle, a pattern that typically indicates bearish continuation unless refuted by a high-volume breakout, the rejection took place. Technically speaking, XRP is displaying indications of a gradual and brittle reversal as it hovers just above the 100 EMA.
But there is little conviction in the bounce; volume is still low and momentum indicators like the RSI hover around 45, providing bulls with little comfort. Since the Relative Strength Index does not indicate oversold conditions, an aggressive bounce from this level is not supported by any significant bullish divergence. According to price action, the market is compressing as well. If there is not a strong upward push, XRP might end up moving in the direction of the 200 EMA, which is currently trading close to $2.
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The last significant support that held XRP afloat during the last correction is also at this level, making it more than just a technical target. XRP might enter a more severe retracement phase if there is a breakdown here. The overall trend is still erratic. Despite its prior breakout from a falling wedge in early 2025, which supported its long-term bullish structure, XRP’s recent price action suggests uncertainty.
In the short run, bullish confidence is undermined by the asset’s inability to set a higher high and break above $2.20. The $2 level is in danger unless there is a quick change in market sentiment or XRP recovers $2.20 with volume confirmation. Traders should keep a close eye on how the price interacts with the 200 EMA; if it breaks there will likely be more downward pressure.
