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XRP is currently at a pivotal juncture, teetering on the edge of a crucial price threshold that could determine its short-term direction. For weeks, the cryptocurrency has hovered near the psychological $2 mark, but recent momentum suggests a potential drop below this level could be imminent.
Over the past month, XRP has been locked in a consistent downtrend. The daily chart reveals declining peaks, signaling ongoing bearish pressure. While the $2 level has historically provided strong support, the current price action indicates that this key support may finally be weakening.
The Magnetism of the 200-Day Moving Average
One critical technical indicator to watch is the 200-day moving average (MA), currently sitting at $1.84. This level has acted as both support and resistance in the past, often drawing price action toward it. From a liquidity perspective, the region around the 200-day MA is a key battleground. Traders are likely to place stop-loss orders or initiate new positions here, creating an environment ripe for volatility. It’s not about hitting a specific price target but rather testing whether bulls can defend their ground.
Flashbacks to February’s Collapse
XRP‘s price history has shown sudden and sharp pullbacks. A significant example occurred in February 2025 when the token dropped 30% in a single day, plunging from $2.79 to $1.768. While the market conditions don’t mirror that intensity now, the current setup is reminiscent of a similar moment of uncertainty. The key question is whether XRP can rebound as it did after February’s sell-off, or if it will struggle to regain its footing.
$2: A Level of Resilience
On a positive note, XRP has repeatedly tested the $2 level since December 2024, successfully holding above it each time. This indicates substantial demand in the area, suggesting that long-term holders and strategic buyers could view any dips below $2 as buying opportunities. However, the concern remains: Is the buying pressure strong enough to withstand a fresh wave of selling if momentum accelerates towards the 200-day MA?
Also Read: XRP Could Surge to $27: Exploring 3 Key Fibonacci Levels and Market Potential
In conclusion, XRP is walking a fine line. Whether it rebounds or breaks down could set the tone for its next major trend. Traders and investors alike should closely monitor this critical price action in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
