XRP's Technical Outlook
Recently, XRP fell below the critical $2 threshold, slipping to around $1.93 due to recent volatility in the cryptocurrency market. In the short term, there is a clear selling pressure, while technical indicators are generating possible signals of change in the medium term. Market players are carefully observing the reasons behind XRP’s weakened price and the potential scenarios that might unfold next.
Following a brief attempt to exceed $2, XRP encountered significant selling pressure, erasing its gains. The $2 level, which previously acted as support, has now become a resistance region, hindering upward movements. The stabilization of price around $1.93 has highlighted the $1.90 level as a short-term defense point. Should this level fail, downward momentum could accelerate.
From a technical perspective, the weekly MACD indicator is under close watch. The weakening of histogram bars and the convergence of two lines indicate a potential shift in market momentum. Renowned technical analyst, ChartNerd, notes that a positive crossover in the weekly MACD could facilitate XRP breaking its descending resistance line. Although similar crossovers have triggered strong rallies in the past, caution prevails as prices remain beneath a longstanding downtrend.
On the upside, sustained pricing above $2.05 is regarded as a sign of technical recovery. If confirmed, this breakout could bring the $2.50 region back into focus. Conversely, the current structure suggests that sellers still dominate.
Prices Strained by Lack of Buyers and Macro Pressure
At the beginning of the month, XRP reached $2.41, marking a two-month high and a roughly 30% increase from the start of the year. However, the failure for this movement to sustain indicates weakness in buyer interest. Market analyst Dom notes that the rise occurred under low liquidity conditions rather than strong demand, lacking sustainable buying appetite.
Since hitting the peak, XRP has seen an approximate 18% pullback, with the $1.80 region emerging as a critically tested support for the third time. Analysts warn that dropping below this level could lead to deeper losses, with consensus growing that stability requires a return above $2.05.
The pressure on the cryptocurrency market is not solely due to technical factors. Increasing geopolitical tensions and trade sanctions between the US and the EU dampen interest in risk assets. Following military activities around Greenland by European countries, the US has responded with tariffs, reinforcing cautious investor sentiment. This situation has intensified selling pressure across many cryptocurrencies, including XRP.