XRP Rebounds 0.95% After 5-Day Decline, Holds Above $2 Support

XRP, the fourth-largest cryptocurrency by market capitalization, has demonstrated resilience after a five-day decline, rebounding from the crucial $2 level. This level has become a key battleground for traders, as a sustained drop below it could indicate a deeper bearish trend. XRP recently dipped to $2.06 before recovering, suggesting that market participants may be accumulating at this support zone.

The $2 mark remains a critical threshold for XRP’s price trajectory. If the asset slips below this level and fails to regain momentum, analysts warn that it could validate a bearish head-and-shoulders pattern. This technical structure, recently identified by veteran trader Peter Brandt, suggests that a breakdown could push XRP toward $1.07. However, a decisive rally above $3 would invalidate this bearish formation, reinforcing a more optimistic outlook.

One of the key support levels traders are monitoring is $1.90, which has held firm multiple times since November 2024. Despite recent corrections, XRP has not closed below the $2 mark on the daily timeframe, reinforcing the idea that buyers continue to see this region as an attractive accumulation point.

After surging to a multi-year high of $3.40 just two months ago, XRP has retraced approximately 40%, mirroring the broader crypto market’s reaction to macroeconomic uncertainties. However, it remains significantly above its November 2024 low of $0.50, reflecting a consolidation phase rather than a full-blown reversal.

As of report time, XRP is trading at $2.13, up 0.95% over the last 24 hours, with intraday highs reaching $2.21. However, on a weekly scale, it remains down 10%, indicating ongoing market indecision.

Looking ahead, bearish forces may attempt another push below the $2 support zone. If sellers succeed, XRP could see further declines toward $1.27 or even $1.07, aligning with bearish chart projections. Conversely, if bulls manage to sustain XRP above $2 and push toward $2.50, the asset could consolidate within a $2–$2.50 range before making a decisive move.

For a true bullish reversal, XRP must reclaim the $2.50 level, setting the stage for a potential rally back to $3. If this occurs, it could invalidate the bearish outlook and reignite optimism among investors.

Dark Defender, a well-known crypto analyst, recently highlighted that XRP is "hugely oversold" on the 4-hour time frame. This observation is crucial as it suggests that the asset has experienced excessive downward momentum, often indicated by the Relative Strength Index (RSI) falling below 30. Historically, such oversold conditions have preceded significant rebounds, making this a pivotal moment for market participants.

The key support level of $2.222 has emerged as a critical juncture for XRP’s price movement. Support levels act as price floors where buying interest often resurfaces, preventing further decline. If XRP can maintain this level, it could catalyze a bullish reversal, reinforcing trader confidence and attracting fresh capital inflows. However, a breakdown below this support could trigger additional selling, leading to a test of lower support zones.

The broader cryptocurrency market sentiment plays a crucial role in determining whether XRP can sustain its support level. Factors such as Bitcoin’s performance, macroeconomic indicators, and regulatory developments could influence price action. Given that XRP has shown resilience in previous market downturns, a potential bounce from the oversold zone could be imminent.

If XRP holds above $2.222 and gains buying momentum, a rally toward key resistance levels may follow, possibly targeting $2.50 and beyond. Conversely, if bearish pressure persists and the price dips below this level, the next support zones around $2.10 and $2.00 could come into play. Some analysts believe XRP will remain bullish as long as it stays above $2. Technical indicators suggest that if XRP fails to hold $2, further declines to $1.80 or even $1.50 could follow, unless a strong buying resurgence reverses the trend.

Dark Defender’s analysis highlights a pivotal moment for XRP. The asset’s oversold status suggests a high-probability setup for a price reversal, contingent on its ability to hold above $2.222. Investors and traders should closely monitor price action and volume dynamics in the coming sessions to gauge the likelihood of an upward move. As always, risk management remains essential in navigating volatile market conditions.