XRP News Today: XRP Drops 2% as Key Support Level Breached

XRP, the cryptocurrency associated with Ripple, has recently faced a short-term downturn as it breached a significant support level at $2.25 and subsequently confirmed it as resistance upon retesting. This development marks a critical juncture for the cryptocurrency, as the monthly close above or below the 0.00002041 level remains the most critical factor determining XRP's next major move. The current price of XRP is $2.20, reflecting a 2% daily decline. Technical analysis indicates that the next resistance levels are at $2.50–$2.60, while support is found at lower levels.

According to technical analyst CasiTrades, this backtest could be a prelude to further downside movement. The chart indicates a failed attempt to reclaim $2.25. Following the breakdown, price action rebounded slightly on the back of a lower-time frame bullish divergence. This brief rally, however, encountered rejection at the former support zone, which has now flipped to resistance. The price was $2.239 at the time of her analysis, unable to break convincingly above the new ceiling. It has fallen since then and is currently trading at $2.17.

While other analysts have maintained a bullish outlook, CasiTrades expects a short-term downturn. The current market structure suggests XRP is approaching a key inflection point, and the analyst recently revealed that the market is out of time and XRP must decide on a direction. The chart highlights a converging triangle pattern, with XRP nearing the apex. A breakdown from this tightening range would likely send the asset’s price toward lower support zones. The next significant support levels lie at $2.01 and $1.90, with further potential downside toward $1.55. The Fibonacci target of 1.236 is marked at $2.0200, reinforcing the importance of the $2.01–$2.02 zone as a probable landing point should the downward pressure persist.

The relative strength index (RSI) is also approaching a wedge-shaped breakout zone. The RSI has been forming lower highs while maintaining a horizontal base; a breakout or rejection here will likely coincide with a directional price move. RSI currently hovers near the neutral 50 mark, and momentum has not reclaimed higher ground despite the earlier bullish divergence. Unless a divergence forms on higher timeframes, the rejection at $2.25 could intensify.

With time running out before the price reaches the convergence point, XRP is poised for a decisive move. If the $2.25 level continues to act as resistance, the bearish case strengthens, particularly given the unfulfilled Fibonacci levels and the visible bearish retest pattern. Although she suggests a short-term downturn, CasiTrades noted that “this is likely a final support touch before a major breakout.” Another well-known analyst recently predicted a notable 725% rally for the digital asset, and XRP’s tightening Bollinger Bands suggest that the asset could experience a sharp rebound, invalidating the bearish move and potentially targeting new highs.

The cryptocurrency has entered a consolidation phase following its 600% surge in 2024, currently trading at almost $2.16. This consolidation phase is characterized by a lack of significant price movement, as the cryptocurrency trades within a narrow range. The current price scenario shows XRP trading under mild pressure, with immediate support near $1.73 and resistance noted around $2.88. A significant upper barrier is at $3.45, with lower support at approximately $1.15. Bearish signals dominate from moving averages and oscillators, indicating stronger bear influence. There is no clear upward trend, as prices remain confined within these levels. Traders may consider buying near support for potential rebounds or selling near resistance to secure short-term gains. Monitoring momentum changes around these levels will be crucial for strategic entries and exits.

The cryptocurrency has experienced a significant decline of about 10.6% over the last month, while its half-year performance shows a milder drop of approximately 3.0%. Price action fluctuated within a range of $1.95 to $2.53. A one-week decrease close to 5.8% underlined short-term bearish momentum. Technical indicators like the Awesome Oscillator and Momentum Indicator reported negative values, reflecting a lack of buying interest. The relative strength index stayed just below 46, suggesting a slight caution in market activity. These indicators point to a sustained consolidation phase in recent weeks. The cryptocurrency has hit a crucial resistance zone, with an analyst warning of a potential breakout or drop. The price path of XRP, investor risks, and the overall crypto outlook are all factors to consider as the cryptocurrency navigates this critical point.