XRP Approaches Critical $2.17 Support Zone Following Death Cross Formation

XRP traders brace for impact as the digital asset tests crucial technical levels.

The $2.17 Support Battle

All eyes focus on the $2.17 price point after XRP's recent death cross pattern emerged on daily charts. This critical support zone represents make-or-break territory for the embattled cryptocurrency.

Technical indicators scream caution while traders watch for either a decisive bounce or breakdown. The death cross formation—where the 50-day moving average crosses below the 200-day average—typically signals extended bearish momentum ahead.

Market participants hold their breath, knowing that traditional technical analysis sometimes works in crypto markets about as well as a financial advisor recommending Beanie Babies in 1999.

Will $2.17 hold as support or become resistance? The answer determines whether XRP bulls live to fight another day or join the graveyard of overhyped digital assets.

has recently dipped below the crucial $2.20 mark, amplifying selling pressure as a “death cross” signal loomed over the market. With significant withdrawals of XRP from exchanges in recent weeks, long-term investors appear to be in a consolidation phase. Short-term indicators, however, show that the downward trend remains strong.

ETF Inflows Stay Robust, Yet Spot Demand Weakens

Franklin Templeton’sand Grayscale’sETFs have attracted net inflows for three consecutive days, indicating sustained institutional interest. Nonetheless, Binance‘s reserves have decreased to 2.7 billion XRP, marking the lowest level in a year. While approximately 300 million XRP have been withdrawn since October, bolstering long-term holding trends, spot demand remains insufficient to counterbalance this accumulation. Position closures and risk aversion in derivatives markets have reignited short-term selling pressure.

Technically, the retreat that commenced at $2.22 has stabilized at $2.18, underscoring the robustness of the resistance in the $2.23–$2.24 range. For the past two weeks, the price has been moving within a declining channel. Theindicator shows consistent resistance below the midline during each rally attempt, while thecontinues to deepen in the negative zone. The slope of the 50-day moving average has turned downward, a configuration known to accelerate short-term declines based on historical data.

Key Zone: $2.17–$2.18 Range

Should XRP fail to maintain the $2.17–$2.18 support range, analysts warn that the $2.08 and $1.90 levels could come into focus. This zone represents the threshold between a routine correction and a deeper retreat. For price momentum to resume, a break above the $2.20 mark and subsequently the $2.23–$2.24 band with increased volume is necessary. Otherwise, any recovery could be merely a technical rebound.

Historical “death cross” formations suggest that unless the price surpasses the 50-day moving average, downward risks remain elevated. While continued ETF flows and decreasing exchange reserves indicate structural strengthening in the mid-term market, the short-term trend still favors sellers.