XRP's Bearish Momentum Intensifies, March 2025 $2 Threshold at Risk

XRP's recent performance has raised concerns about its potential to drop below $2 by March 2025. The cryptocurrency has experienced a significant correction of nearly 30% over the past 30 days, with its price trading below $3 for an extended period. The Directional Movement Index (DMI) indicates a strong downtrend, with the Average Directional Index (ADX) surging above 35, suggesting increased bearish momentum.

The Directional Movement Index (DMI) for XRP reveals that its Average Directional Index (ADX) has risen sharply to 36.98, up from 15.89 just four days ago. This increase signals that the current downtrend is gaining momentum, as an ADX value above 25 typically indicates a strong trend. The surge in ADX suggests that market participants are showing stronger conviction, making the existing trend more likely to continue.

Despite the reduction in bearish pressure, as indicated by the decline in the Negative Directional Indicator (-DI), the -DI remains above the Positive Directional Indicator (+DI). This confirms that the downtrend is still intact, and the widening gap between the ADX and the directional indicators suggests that the downward trend is strong and persistent. Until the +DI crosses above the -DI, signaling a potential trend reversal, XRP is likely to remain in a bearish phase.

The number of 7-day XRP Active Addresses has started to recover after reaching its lowest level in three months. This metric, which measures user engagement and network activity, reflects demand for XRP. The recent increase in active addresses suggests growing user activity and renewed interest in the network. Historically, rising active addresses can precede price recoveries as participation leads to higher demand. If this trend continues, it could support a potential price rebound, but sustained growth is needed to confirm a bullish shift.

XRP's uptrend largely depends on the outcome of the SEC and Ripple lawsuit. The cryptocurrency's EMA lines currently show a bearish setup, with short-term lines below long-term ones. If the downtrend persists, XRP could test two strong support levels at $2.15 and $2.06. If these are lost, XRP price could fall to $1.77, dropping below $2 for the first time since November 202