XRP Price Prediction: Will the Cryptocurrency Continue Its Downtrend or Bounce Back?

The cryptocurrency has been experiencing sideways movement, consolidating between key price zones amid a market phase characterized by uncertainty

The cryptocurrency has been experiencing sideways movement, consolidating between key price zones amid a market phase characterized by uncertainty, as buyers and sellers compete for dominance.

The cryptocurrency is currently trending downwards, trading below the 50-day Exponential Moving Average (EMA), which is often encountered as dynamic resistance.

This indicates that sellers have been applying pressure throughout the chart, sellers might attempt to push lower. However, it remains above the 200-day EMA, a stronger support level on larger time frames, suggesting that buyers may intervene if prices fall further.

The downward slope of the 50-day EMA signifies increasing bearish pressure, indicating that sellers maintain control.

On the other hand, the stability of the 200-day EMA implies that buyers might step in to support the price at this level, potentially leading to a bounce in the coming days.

The Relative Strength Index (RSI) is currently at 49.27, placing it in a neutral zone—neither overbought nor oversold.

If the RSI drops below 30, it could signal increased selling pressure, pushing the price further down and indicating oversold conditions where traders might seek buying opportunities.

Conversely, an RSI above 70 would suggest strong bullish momentum, potentially leading to a breakout rally. At present, the market remains in a cautious phase, awaiting clear directional confirmation.

Support at $1.85: This major support zone has previously attracted buyers to prevent further price declines. A retest of this level would require close observation to see if buyers defend it again or if a break occurs, potentially leading to additional downside momentum.

Resistance at $2.60: For XRP to enter a strong bullish phase, a solid breakout and confirmation above this key resistance level are necessary. A daily close above $2.60 with strong volume could indicate a shift toward bullish momentum.

Liquidity Area (Order Block): A previous area of liquidity, often referred to as an order block, could act as a significant reaction zone. These areas typically represent institutional interest, so if XRP approaches this zone, a strong reaction in either direction may occur.

If XRP manages to break above $2.60 and manages to hold this level as support, a rally toward the next key resistance at $3 is possible, indicating buyer control and a potential upward trend.

To identify a clear bullish bias, traders can look for indicators of strong buying pressure, such as increased trading volume during the breakout or a move in the RSI above 60, signaling a shift in momentum.

If XRP loses support at $1.85 and closes below this level on the daily chart, further selling pressure could push the price toward the next lower support at $1.25.

Signals of persistent bearish control include a volume spike on a red candle, indicating strong selling pressure, and the RSI dropping below 30, confirming oversold conditions and potential failure to reclaim lost support levels after a breakdown.

Recent market movements have also been influenced by broader economic factors, such as U.S. President Donald Trump’s tariff announcements, which have spooked risk traders and contributed to potential downside prospects for assets like XRP.

Moreover, the market appears to have fully priced in the SEC dropping its cases against Ripple, as the final confirmation of that saw no positive upward price momentum.

Analyst opinions on XRP’s future price vary. Some forecasts suggest that XRP could reach a price range of $5 to $7 in the first half of 2025, citing strong post-election momentum and advancements by Ripple—the payment platform associated with XRP.

Conversely, other analyses indicate that XRP faces significant resistance levels and may experience further declines if bearish pressures persist.