XRP News Today: XRP's $2.4–$2.5 Support Base Faces Critical Test: Rebound or Plunge?

XRP, the digital asset issued by Ripple, has shown resilience amid a broader market slump, with technical indicators suggesting a potential rebound. The token is currently trading above its 200-week moving average at $2.5, with strong liquidity observed between $2.4 and $2.5, according to an Intellectia report. Analysts note that while the Relative Strength Index (RSI) remains neutral, shorter-term exponential moving averages (EMAs) hint at emerging bullish momentum, albeit with weakening sentiment as prices dip below key EMAs .

The recent price action has drawn attention to a potential harmonic pattern, a technical analysis tool used to identify reversal points. Traders are closely monitoring whether XRP can defend its support base between $2.4 and $2.5, which could trigger a renewed upward trend. A breakout above the 200-day EMA at $2.60 and the descending trendline-established after XRP hit a record high of $3.66 in July-would signal a shift from bearish to bullish sentiment .

Ripple's corporate activities have also sparked debate about XRP's future. The company recently acquired Palisade, a crypto custody firm, as part of its push to expand institutional services, including custody, payments, and prime brokerage, according to a BeInCrypto report. However, XRP has extended a 15% weekly decline, raising questions about whether corporate growth will translate into stronger demand for the token . Ripple CEO Brad Garlinghouse has emphasized that the company's investments in institutional infrastructure could drive long-term value, but market watchers remain cautious about near-term price alignment with business developments.

The broader cryptocurrency market is under pressure, with Dogecoin (DOGE) plunging 8% amid similar technical concerns. Analysts note that XRP's trajectory could mirror DOGE's pattern of brief technical bounces unless sustained buying pressure emerges above $2.40–$2.50. Volume data shows concentrated trading activity in the $2.4–$2.5 range, forming a critical support base, while the $2.5–$2.7 range is experiencing consolidation with elevated volatility .

Ripple's recent performance has also been overshadowed by macroeconomic headwinds. The token's 10% risk of another decline stems from waning retail demand and ongoing leverage unwinding, according to FXStreet. Key support levels at $2.18 and $1.90-tested in October and June, respectively-remain critical for short-term stability .

Despite the volatility, some analysts remain optimistic. "If XRP holds above $2.40, we could see a technical rebound driven by dip buyers," said one market strategist, citing historical patterns. However, they caution that a breakdown below $2.18 could accelerate the decline toward $1.90.

Ripple's institutional expansion, including its partnership with Carta to introduce chip-enabled prepaid solutions, may provide a long-term catalyst. The company's recent earnings call highlighted progress in its Indiana production facility and closed-loop prepaid initiatives, though margin pressures persist .