XRP Drops 5% After Failing to Hold $2.20 Resistance

The XRP price has been experiencing volatility, with a decline after failing to maintain momentum above the $2.20 resistance mark. Recent movements and news surrounding Ripple indicate that this digital currency remains susceptible to further losses despite attempts at recovery. The current trading range is below $2.120, with significant resistance near $2.150, suggesting that bulls need a stronger push to regain control.

Technical indicators present mixed signals. The Relative Strength Index has rebounded from oversold territory, but the broader Ichimoku Cloud pattern still indicates a bearish outlook. The 100-hourly Simple Moving Average also acts as resistance. If XRP fails to surpass these key levels, it could trigger another drop towards $2.020 or potentially $1.88.

Historical patterns suggest a deeper correction is possible. Ripple experienced sharp declines after significant rallies in 2018 and 2021, with Net Unrealized Profit/Loss data showing “denial” phases preceding sell-offs of 75-90%. As of April 1, 2025, the live price of XRP is $2.09. In March, XRP’s Net Unrealized Profit/Loss data entered the “denial” zone again, indicating a potential extended correction. If historical trends repeat, a similar 60% downturn could occur, placing potential downside targets near the 200-week EMA at approximately $0.87. Bearish divergence on the weekly RSI reinforces the need for caution among traders and investors.

Despite the prevailing bearish sentiment, bulls have successfully defended crucial support levels around $2.06 and $2.020. XRP price rebounded shortly after testing these areas, indicating some buyers are stepping in to prevent further losses. However, achieving sustainable recovery requires this cryptocurrency to first clear immediate resistance at $2.150 and then aim for higher targets like $2.22 and $2.47.

A bearish EMA structure persists, with short-term moving averages trending beneath long-term ones. A break above short-term EMAs could indicate a trend shift if bullish momentum builds. Ichimoku Cloud analysis still suggests overhead resistance; however, consolidation hints that sellers might be losing some control. Market sentiment could turn bullish following a decisive move above the cloud.

XRP maintains potential for upward movement if critical resistance levels are broken. Successfully pushing above $2.22 might open the door for a rally toward $2.47 and $2.59. The digital currency must signal a robust trend reversal by reclaiming the $2.88 mark for a stronger bullish confirmation. However, if the Ripple price stays below $2.15, prolonged consolidation or another downward move might happen. In this scenario, traders should watch the $2.00 and $1.88 support zones for signs of stability. Volume and momentum indicators will determine whether XRP can shift out of its current bearish trend and establish a sustainable recovery.

Ripple is at a critical point; its next movements will likely shape the medium-term outlook. Prices continue to be trapped below key resistance levels, with the dominant trend suggesting caution. If bulls fail to clear the $2.150 level, another drop toward $2.020 or lower could happen. If XRP successfully breaks above its key resistance zones, a rally toward $2.47 and beyond remains possible. Investors need to monitor price movements closely, especially RSI and EMA, as they provide clues about whether Ripple is headed for recovery or further downside. XRP news in the coming weeks will be essential in shaping the cryptocurrency’s market trajectory.