XRP Slips Below $2 as Bearish Momentum Strengthens
XRP has decisively fallen below the critical $2 support level, signaling that sellers are gaining stronger control of the market. This breakdown is significant because the $2 zone previously acted as a psychological and technical floor, attracting dip buyers during prior corrections. Now that price is holding below this level, market structure favors continuation to the downside.
From a technical perspective, lower highs and lower lows dominate the chart, confirming a bearish trend on the daily timeframe. Multiple breakdowns in market structure suggest that rallies are being sold into rather than sustained. Former support zones between $2.20 and $2.60 have flipped into resistance, increasing selling pressure on any short-term bounce.
Momentum indicators also align with the bearish narrative. Weak volume on recovery attempts indicates a lack of conviction from buyers, while sellers continue to defend overhead resistance aggressively. If current conditions persist, liquidity below recent lows could be targeted, opening the door to a deeper retracement toward lower demand zones.
Despite the negative technical setup, macroeconomic developments remain a potential wildcard. A softer-than-expected U.S. inflation reading could improve overall risk sentiment, prompting a short-term rebound in high-beta assets like XRP. Such a move, however, would likely be corrective unless price reclaims and holds above the $2 level.
In the near term, the broader bias remains bearish while XRP trades below $2. Sellers appear firmly positioned, and without a clear catalyst, downside risks outweigh upside potential. Traders will be closely watching whether buyers can defend lower demand zones or if selling pressure accelerates further.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.