After showing early signs of recovery, XRP reversed course sharply this week, losing more than 3% and slipping below key support levels. The move wiped out its short-lived gains and reignited fears of a slide toward $1.
Just days after flashing hints of stability, XRP (XRP-USD) is back in retreat. The token plunged more than 2.5% over the past 24 hours, dropping below key short-term support levels and deepening its bearish outlook. At last check, XRP was trading near $2.18, down from its attempted rebound above $2.60 earlier in the week.
The failed breakout attempt near the 50-day moving average has become the defining signal for this reversal. Selling pressure has intensified across the broader crypto market, leaving bullish traders outmatched. Analysts note that rejection near this level often marks the start of a new downward leg, especially when momentum fades this quickly.
The breakdown below $2.20 has put traders on edge. This level had acted as short-term support, but the breach now leaves the door open for further declines. The next psychological marker sits at $2.00, a round-number level that could draw temporary buying interest, but not enough to reverse the trend on its own.
If momentum continues to deteriorate, the next major downside target is $1.00, a level that played a pivotal role in previous market cycles. For now, volume data show selling activity far outweighing buying demand. The Relative Strength Index (RSI) hovers near 40, suggesting momentum is weak but not yet oversold enough to spark a sharp rebound.
To invalidate the bearish setup, XRP would need to reclaim its lost moving averages, rebuild bullish structure, and close decisively above $2.70 to $2.80. This scenario appears unlikely in the short term. Risk appetite across crypto remains low, and confidence in altcoins continues to erode as traders rotate toward more stable assets.
Until momentum shifts decisively, the trend points lower. The $1.00 zone, once a distant bearish target, is increasingly viewed as a realistic waypoint.
At the time of writing, XRP is sitting at $2.4220.
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