XRP Price Predictions: After Reaching This Peak, XRP Has Experienced Significant Volatility

After reaching this peak, XRP has experienced significant volatility, currently trading around $2.50. A bearish divergence forming on both daily and weekly charts suggests a potential pullback, with analysts warning of a possible retest of the $2 support level.

After hitting this peak, XRP has seen substantial volatility, trading around $2.50 at press time. A bearish divergence is forming on both daily and weekly charts, indicating a possible pullback. Analysts warn that the price could retest the $2 support level.

The XRP price already dropped below the critical $2 support on February 3. Source: Xavier Sterling via X

The cryptocurrency reached a high of $3.03 in January, marking its highest monthly close in years. But the price was quick to correct, dropping to $1.78 before recovering. Now, as technical indicators show a loss in bullish momentum, XRP may face another downturn unless buyers intervene at critical levels. The 2025 price predictions for Ripple’s XRP were bullish, but the tables are turning now.

Bearish Divergence Hints at Potential Downturn

One key concern for XRP investors is the formation of a bearish divergence—where the price makes higher highs while the RSI forms lower highs, suggesting weakening buying pressure and a high probability of a price correction.

XRP’s bearish divergence setup threatens to push the price below the $2 support. Source: TheTraderEdge on TradingView

At the same time, the overbought levels on both the daily and weekly charts have been decreasing, indicating a likely weakening rally. Some analysts have predicted that, historically, divergences have set the stage for pullbacks of up to 23% from current prices. If the bearish trend continues, XRP should revisit the $2 mark—an area that acted as strong support for the digital asset.

XRP Must Hold Key Levels to Avert a Deeper Correction

For XRP to invalidate the bearish outlook, the bulls need to drive the price above $2.90 on the daily chart. This level previously served as resistance in December before turning into support during XRP’s rally past $3.

The XRP price must hold above the $2.90 level to revive the bullish momentum. Source: WhoIsCaerus on TradingView

Moreover, according to on-chain data, $2.90 is a significant price point because most of the heavy trading activity occurred at this level across exchanges like Binance and Coinbase. If the price remains below this level, the chances of further downside increase.

Market Sentiment and Future Outlook

The broader crypto market has also seen turbulence, with macroeconomic factors adding to the uncertainty. XRP’s recent price movements show that traders are being cautious, waiting for clearer signals before making any drastic moves.

Ripple was trading above the $2.50 support, up by 0.51% over the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

If XRP fails to reclaim $2.90, the bearish divergence could play out fully, leading to another correction. In such a scenario, the $2 level will be a critical support zone, and failure to hold above it could open the door for an extended decline towards the $1.78 region. However, if the bulls regain control, XRP could stabilize and attempt another push toward its previous highs.

With the current market dynamics, traders should keep an eye on key price levels and RSI trends to assess XRP’s next move. While the bullish structure is not completely invalidated, time is running out for buyers to step in and prevent a deeper pullback.

Check out – XRP Price Analysis