XRP News Today: XRP Faces Resistance at $2.69 Amid Reduced Engagement and Low Demand

XRP, the cryptocurrency associated with Ripple, is currently at a pivotal point. The token is maintaining a crucial support level at $2.25 but is facing difficulties in breaking through the resistance at $2.69. This situation raises questions about whether XRP will rally higher or risk dropping to $1.50. The persistent decline in the number of addresses joining the XRP Ledger indicates reduced engagement and low demand for the token, which could hinder any potential price increase.

CasiTrades, a crypto analyst, recently pointed out that XRP has successfully bounced off the 0.5 Fibonacci retracement level at $1.90 and reclaimed the 0.382 level at $2.25, showing signs of bullish momentum. However, he also noted that XRP has yet to form a new local high, a key signal for confirming a trend reversal. “XRP is holding $2.25 and building structure, but needs a breakout above $2.69 to confirm a bullish trend,” – CasiTrades.

Technical analysis shows that XRP faces a strong resistance at $2.69, a level it has failed to break several times. On May 12, XRP reached $2.65 but fell short, and on May 14, another attempt was met with heavy selling pressure. Between May 14–17, the price dropped by over 8.85%, highlighting ongoing market uncertainty. As long as XRP trades below $2.69, analysts warn that a downside move toward $1.50 remains on the table.

According to CasiTrades, XRP is currently in a Wave 4 consolidation phase, which typically signals sideways movement as the market builds structure. This phase suggests a potential setup for a strong move—up or down. In the past 24 hours, XRP posted a modest 0.8% gain, with a daily close at $2.3950, after briefly pushing above a short-term resistance at $2.375. However, at the time of writing, XRP is trading slightly below that level again.

Key levels to watch include support at $2.25, short-term resistance at $2.375, and major resistance at $2.69. The analyst emphasized that holding above $2.375 is crucial for any continued upside. A breakdown below this level could trigger another retest of the $2.25 support—and possibly lower.

Doctor Profit, a well-known trader, has recently announced a strategic move from XRP to Ethereum. He secured a 600% profit on his earlier XRP trade and decided to pivot to Ethereum, which is currently trading at a significant 30% discount on the yearly timeframe. XRP, on the other hand, has seen a 342% increase over the past year, trading at $2.38. Doctor Profit emphasized that his exit from XRP is not a bearish call but rather a tactical move to capitalize on Ethereum's short-term growth potential. He believes that XRP will appreciate in the long term but may not see as strong gains as its rivals in the near term.

The move to Ethereum is driven by the belief that ETH currently presents a better opportunity for short-term upside. Ethereum's price has increased by 56% in the past 30 days, compared to XRP's 11% gain during the same period. Despite XRP's impressive 343% yearly gain, Doctor Profit sees more upside potential in Ethereum, especially considering XRP has already experienced a significant surge during this cycle. Both XRP and Ethereum are trading at a discount from their previous all-time highs and are underperforming Bitcoin, which is currently in a price discovery phase.

Doctor Profit plans to re-enter the XRP market when conditions are favorable. He views his current exit as tactical and intends to look for a better re-entry point to catch XRP's next upward move. Other market watchers, such as Dennis of Virtual Bacon, have expressed similar views on XRP. Dennis is waiting for a 20% dip in XRP to around $1.85 before making his first substantial investment, aiming to position himself ahead of the next rally.

The current market conditions and strategic moves by prominent traders highlight the volatility and uncertainty surrounding XRP. While the token holds key support levels, the reduced engagement and low demand could lead to a significant price drop. The decision by Doctor Profit to pivot to Ethereum underscores the belief in Ethereum's short-term growth potential, despite XRP's strong fundamentals and long-term prospects. As the market continues to evolve, investors will need to closely monitor these developments and make informed decisions based on the latest trends and analyses.