Ripple's (XRP) Price Retests Key Support Levels, Raising Concerns About Its Short-Term Trajectory

Ripple's XRP is currently experiencing a price decline of over 3%, trading around $2.44 as of February 6, 2025.

Ripple's cryptocurrency, XRP, experienced a price decline of over 3% on Friday, February 6, 2025, trading around $2.44 at the time of writing. The cryptocurrency faced a retest of crucial support levels, sparking concerns about its short-term trajectory.

A recent death cross occurred, where the 50-day moving average fell below the 200-day moving average, which triggered bearish sentiment and suggested the potential for further downside. However, some analysts remained optimistic about XRP's long-term prospects.

XRP's Short-Term Market Trends

The dip in XRP's price was part of a broader market volatility, with investors reacting to macroeconomic conditions and regulatory developments. The death cross is a widely watched technical indicator, often signaling a bearish trend. If XRP fails to maintain its current support levels, it could face additional selling pressure, potentially pushing the price down further.

Despite the short-term uncertainty, XRP had shown resilience in previous downturns, often rebounding after testing major support zones. If buying pressure increases, XRP could stabilize and attempt a recovery toward its previous resistance levels.

Bullish Outlook for XRP in 2025?

While short-term traders remained cautious, some analysts held a bullish long-term outlook for XRP. Notably, Arthur Azizov, the CEO of B2BinPay, predicted that XRP could reach a price range of $5 to $7 in the first half of 2025.

Azizov attributed this potential growth to Ripple's continuous developments and the launch of its stablecoin, RLUSD. The stablecoin aimed to enhance XRP's utility within the Ripple ecosystem, potentially increasing demand.

However, skepticism remained due to XRP's limited use cases. Unlike Ethereum and Bitcoin, which support a broad range of applications, XRP primarily functions as a settlement token within Ripple's payment network. Additionally, the success of RLUSD would depend on market adoption and its ability to maintain a stable peg to the U.S. dollar.

Key Factors to Watch in the Coming Weeks

The next few weeks will be critical in determining XRP's price trajectory. Investors should keep an eye on the following key factors:

• Macroeconomic data and its impact on the stock and crypto markets.

• Regulatory updates and their potential effects on XRP and Ripple.

• Technical analysis and XRP's movement in relation to support and resistance levels.

• Ripple's strategic advancements, including the performance of RLUSD and any new partnerships or developments.