XRP Price Encountered Significant Resistance Below $2.50, Maintaining Its Position Above $2.00

Over the past few days, XRP has encountered significant resistance below $2.50, with bearish pressure keeping the asset in a volatile range.

Over the past few days, XRP has encountered significant resistance below $2.50, with bearish pressure keeping the asset in a volatile range. While some indicators signal potential recovery, strong resistance levels remain a formidable barrier.

XRP’s Struggle Against Key Resistance Levels

XRP has been navigating turbulent waters, slipping below the $2.50 threshold and finding temporary support at $2.05. Despite occasional rebounds, the token remains under pressure, with resistance levels forming at $2.33 and $2.45. A sustained move above these levels could pave the way for a push towards $2.50 and potentially $2.62. However, a failure to break past these barriers may trigger another downturn, with support at $2.23 and $2.20 being the next critical levels to watch.

The XRP price could break below the $2 support following the ongoing bearish trend. Source: JumpStartCrypto on TradingView

Technical indicators paint a mixed picture. The Moving Average Convergence Divergence (MACD) signals a possible bullish momentum shift, while the Relative Strength Index (RSI) hovering above 50 suggests moderate buying interest. However, the 100-hourly Simple Moving Average (SMA) remains a challenging hurdle for XRP’s upward trajectory.

Market Trends and Bearish Threats

The broader crypto market downturn has further complicated XRP’s path to recovery. The token recently fell below an asymmetrical triangle pattern on the daily chart, a bearish signal suggesting a potential decline toward $1.50. Additionally, a drop in open interest (OI) to eight-week lows hints at fading trader confidence. CoinGlass data reveals a 20% decrease in XRP’s OI, mirroring similar patterns seen during past downturns.

Ripple (XRP) was trading at around $2.29, up 4.5% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Analysts note that XRP’s funding rates have turned negative, indicating increasing bearish sentiment. Over $57.6 million in long XRP positions have been liquidated in the last 14 hours alone, compared to only $4.71 million in short liquidations. This liquidation pressure has accelerated XRP’s decline, making its recovery more challenging.

Institutional DeFi and Long-Term Prospects

Despite its short-term troubles, Ripple’s long-term vision for XRP remains big. The company has plans to add institutional decentralized finance (DeFi) products and real-world asset tokenization to the XRP Ledger (XRPL). Additions such as a native decentralized exchange (DEX), Automated Market Maker (AMM) liquidity injections, and a compliance-oriented design will position XRP to be at the forefront of institutional blockchain adoption.

Ripple’s CTO predicts massive institutional XRP adoption, with XRPL’s DeFi set to skyrocket and major banks poised to buy in. Source: Amelia via X

Ripple’s road map also includes working on an Ethereum Virtual Machine (EVM) compatible sidechain, which would attract Ethereum-based developers and increase the application of XRP in decentralized applications (dApps). All of these, with Ripple’s ongoing collaborations in cross-border payments, could be long-term bullish factors for XRP.

What’s Next for XRP?

For XRP to regain momentum, it must convincingly overcome the $2.45 resistance level. A successful crossing above this figure may see prices up to $2.50 and beyond, the next high-priority target being $2.62. Alternatively, the inability to move past these barriers might see prices revisit significant levels of support around $2.05 and $2.00. A daily close below $2.00 would cement the bearish scenario, sending XRP down as low as $1.78 or further.

XRP could shift the current market momentum if the price survives the $2 support. Source: JasonTrading589 on TradingView

Investors and traders are on hold, expecting a breakdown or a breakout in the coming days. It will be left to market sentiment, technical triggers, and general crypto trends whether XRP can overcome its resistance problems or keep falling.

As the battle between bulls and bears intensifies, XRP holders must weigh the risks and opportunities, navigating the volatile landscape with caution.

Watch – XRP Price Analysis Video