XRP Tests $2 Mark as Market Enters New Downturn

On Wednesday, XRP dropped below the critical $2 mark, retesting the $1.96 level as the crypto market faced heightened volatility.

The price of XRP dropped below the $2 mark on Wednesday, retesting the $1.96 level as the crypto market faced heightened volatility.

The sudden downturn in the market wiped out gains from the past three days, with over $450 million in crypto futures liquidated in the last 24 hours amid the impact of new U.S. tariffs.

The market shakeup comes after President Donald Trump announced a 25% tariff on auto imports and at least a 10% tariff on all exporters to the U.S., further impacting investor sentiment.

Technical Analysis of XRP

As pointed out by one analyst, XRP continues to show signs of a bearish divergence, a pattern that has been developing for months and suggests the potential for lower prices. However, zooming into the 8-hour timeframe, there’s evidence of a short-term bullish divergence—a slight upward movement in price with choppy sideways action.

In the short term, XRP is encountering strong resistance between the $2.24 and $2.30 levels, with a recent rejection at around $2.24 as this level has been a consistent barrier, preventing XRP from gaining momentum.

For support, the key zones to watch are between $1.95 and $2.05. If XRP manages to stay above this range, there could be a chance for a mild relief rally or a sideways price movement in the coming days.

Even with a short-term bullish divergence, XRP may struggle to break through resistance without stronger market catalysts to propel it higher.