Ripple's native cross-border token has dropped to $1.93 after failing to hold above the $2 mark. In the short term, the price action is moving to the downside, but some technical indicators suggest a potential trend reversal in the future.
XRP Stalls Below $2 as Support Shifts
XRP lost momentum following a brief move above $2. Sellers quickly entered the market, pushing the asset down and erasing recent gains. The former support level at $2 has now transitioned into resistance, capping any further upside movements.
XRP is currently trading around $1.93, with $1.90 serving as a nearby support level. A failure to hold this level could lead to additional losses. For bulls, a stable movement above $2.05 would be considered an important milestone for recovery.
Meanwhile, the MACD on the weekly chart is exhibiting signs of compression. The histogram bars are diminishing, and the two MACD lines are converging. This pattern often precedes a crossover, which traders interpret as a signal that momentum could shift in the coming weeks. A technical analyst known as ChartNerd shared their analysis:
“$XRP could be a few weeks away from forming a bullish cross on its weekly MACD and breaking its descending resistance.”
Historical data indicates that similar MACD crossovers have preceded significant upward price movements. Despite this, XRP continues to trade below its long-term descending trendline, a line that has been respected for months, with the price yet to close above it. A confirmed breakout above this trendline would be necessary for any substantial push towards the $2.50 zone.
Analysts Warn of Weak Buyer Support
Earlier this month, XRP reached a two-month high of $2.41, representing a 30% gain from the start of the year. However, this upward trend was not sustained. Market analyst Dom noted that the rise lacked strong buyer activity.
“The orderflow analysis showed no strong buyer support and rather a push that was possible due to low liquidity,” he explained.
Since that peak, XRP has experienced an 18% decline. Dom also pointed out that XRP has tested the $1.80 area three times, which he described as a final possible support structure. A move below this zone could trigger deeper losses. To stabilize, the asset needs to rise and remain consistently above $2.05.
Other crypto assets have also been impacted by growing geopolitical tensions between the US and the EU. Following military activity involving EU countries in Greenland, the US responded with tariffs. This development has exerted additional pressure on risk assets, including digital currencies.