XRP Drops 26% From Peak, Faces $2.00 Support Test

XRP, the cryptocurrency associated with Ripple, has experienced significant volatility in recent months. After a sharp rise to reclaim the $3 mark, the price has since entered a choppy downtrend, currently hovering around $2.26. This has led many traders to question whether XRP is on the brink of a major crash or if this is merely a healthy correction before a new rally.

The chart indicates a fading bullish momentum, with XRP trading below all short-term moving averages—the 20, 50, and 100-day simple moving averages (SMA)—which are now acting as resistance. The price has attempted to push through these averages multiple times but has failed, indicating that buyers are not currently in control. Heikin Ashi candles show consistent red bodies with lower highs, signaling ongoing bearish sentiment. The inability to break back above the $2.50 resistance zone, coupled with this sluggish behavior, suggests that XRP is struggling to maintain its position.

The Relative Strength Index (RSI) currently sits around 42.9, leaning toward the bearish side of neutral. It hasn’t touched oversold levels yet, but it’s also far from signaling any strong upward momentum. The RSI has been consistently trending downward since mid-February, with no bullish divergence formed to suggest a reversal. This weak RSI position hints that if selling pressure increases even slightly, XRP could dip quickly—possibly to test the next support around $2.00 or even down near the 200-day SMA at $1.76.

Looking at the broader picture, XRP is still trading above the crucial 200-day SMA, which is currently near $1.76. This moving average has historically served as a last line of defense during downtrends. If XRP breaks below that level, it would technically confirm a full trend reversal into bearish territory, potentially opening the gates to a steeper fall toward the $1.50 level. On the upside, XRP needs to reclaim $2.50 with strong volume to invalidate the bearish thesis. Only a daily close above that range could suggest renewed interest and a bullish recovery. Until then, the downside risk appears more likely than a sudden rebound.

The word “crash” in crypto usually implies a sharp 30–50% drop in a short span, and while XRP isn’t showing that severity yet, the current structure sets the stage for a possible deeper correction. If the broader crypto market enters a risk-off phase or if there’s any negative news around Ripple's ongoing regulatory situation, XRP could spiral downward fast. That said, this isn’t panic territory just yet. The long-term structure isn’t broken, but short-term caution is definitely warranted. A failure to hold above the $2.00 psychological level would be a major red flag for bulls.

XRP price is clearly under pressure, trading below key moving averages and showing declining momentum on the RSI. While it hasn’t crashed yet, the warning signs are building. Traders should keep a close eye on the $2.00 support zone and the 200-day SMA near $1.76—those are the levels that could determine whether XRP bounces or breaks. If you’re holding long-term, it might be time to prepare for short-term turbulence. If you’re trading, this may be the moment to sit tight, wait for confirmation, and be ready for either a breakdown—or a surprise bounce.