XRP Price Prediction: Will XRP Bounce From This Support Or Continue Its Descent?

XRP is trading at $2.05 with a market capitalization of $119 billion, the lowest since March 10, 2025, and December 30, 2024.

The cryptocurrency market continues to be highly volatile, with major tokens like XRP showing significant price swings.

At the time of writing, XRP is trading at $2.05, with a market capitalization of $119 billion, reaching the lowest point since March 10, 2025, and December 30, 2024, for the market cap. The 24-hour trading volume stands at $6.51 billion, within an intraday range of $1.97 to $2.19.

The price of XRP is 40.2% below its all-time high.

1-Hour Chart: Slight Recovery From $1.96

The 1-hour chart of XRP shows a cautious attempt to recover from the $1.96 level, forming a nascent higher low. Some green candles indicate a slight return of buyer interest, but the volume is still low, signaling a lack of strong bullish commitment at this micro-level.

There is some resistance at $2.05, the price point of current rejection. For short-term traders seeking a scalping window, a pullback to $2.00 with a very tight stop-loss order below $1.96 could be used, aiming for upside targets of $2.05 to $2.10. However, without a notable increase in volume, the potential for sustained upside seems limited.

4-Hour Chart: Bearish-to-Neutral Structure

On the 4-hour chart, the broader structure remains bearish-to-neutral after a steeper decline from $2.233 to $1.96. An attempt to bounce back was met with resistance at the $2.10 level, highlighting the strength of sellers in this timeframe.

The chart shows large, impactful red-bodied candles, indicating persistent selling momentum, while bounce attempts were met with reduced volume on the green candles, showcasing weak buying interest.

For a bullish reversal in the $1.96 to $2.00 region, it would be ideal to see a candlestick pattern like a hammer or bullish engulfing, along with a simultaneous uptick in volume. This could signal a potential shift in the balance of power between buyers and sellers.

From this entry point, traders could set their initial profit targets around the $2.15 to $2.20 range, where stronger resistance levels are anticipated. However, given the prevailing weakness, any long entries should be approached with caution.

Daily Chart: Lower Highs and Lows

The daily chart presents a distinctly bearish picture of XRP. The price action has consistently formed lower highs and lower lows, signaling a sustained downtrend.

A significant level of support has emerged at the $1.90, which was tested twice and held. On the other hand, overhead resistance appears strong between the $2.40 to $2.60 levels, where previous attempts at breakout were met with selling pressure.

An analysis of the volume trends further reinforces this bearish outlook. Heavy trading activity accompanied the price drop, indicating significant interest at these price points. However, the recent green candles, denoting slight price increases, were met with lower volume, suggesting tepid buy-side interest at this stage.

As the price trades below the short-term moving averages (MAs) and the MACD is in sell mode, entering long positions may carry higher-than-usual downside risk. A strong breakout above the $2.40 to $2.60 resistance zone with a decisive candlestick pattern and increased volume would be needed to spark a short-term bull rally.

Oscillators Neutral, Key MAs Bearish

The technical oscillators are broadly neutral, with the relative strength index (RSI) at 38.3, the stochastic at 14.4, and the commodity channel index (CCI) at -143.7, suggesting a market lacking strong momentum in either direction. The average directional index (ADX) at 16.8 confirms a weak trend presence, while the awesome oscillator at -0.219 supports this neutral stance.

The momentum indicator stands at -0.40459 and signals a buy, suggesting some potential upside from oversold conditions. However, the moving average convergence divergence (MACD) level at -0.08634 indicates a sell signal, highlighting lingering bearish pressure in the broader trend.

All key moving averages continue to flash bearish signals, with both the exponential moving average (EMA) and simple moving average (SMA) across the 10, 20, 30, 50, and 100-periods indicating ‘sell.’ These values range from $2.16 to $2.50, suggesting XRP’s current price is below its average trendlines over various timeframes, reinforcing the bearish outlook.

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