XRP Price Plunges Below $2: What’s Behind the Market Jitters?

XRP just crashed through the $2 floor—and the market's nerves are fraying.

The Technical Breakdown

Support levels evaporated. The drop below that key psychological threshold triggered automated sell-offs, accelerating the descent. It's a classic cascade—once momentum shifts, the algorithms pile on.

Sentiment Takes a Hit

Investor confidence is wobbling. The breach isn't just about numbers on a chart; it's a signal that shakes conviction. When a major asset can't hold a round-number line, everyone starts questioning the thesis.

Broader Market Ripples

This isn't happening in a vacuum. Regulatory whispers, macro pressures, or just good old-fashioned profit-taking—the reasons get debated, but the price action speaks for itself. Sometimes markets just need to shake out the weak hands, a process Wall Street would call 'healthy consolidation' while quietly sweating over their own positions.

So where does XRP go from here? History suggests these moments separate the true believers from the fair-weather fans. The next move will tell us which group is holding the bag.

Ripple$2.03‘s XRP has entered a technically critical area as it sustained a series of closures below the long-defended $2.00 support level. Since January, while there have been brief dips under $2, these were limited to no more than two-day candlesticks, followed by V-shaped recoveries back above the support. However, the decline that began on Sunday saw XRP solidifying its position below $2, empowering sellers. Investors are now closely watching for deeper pullbacks and short-term recovery conditions.

The Persistent Pressure Below $2 Intensifies Selling

The technical analysis perspective indicates that settling below $2 represents the loss of long-held support. Since Sunday, the price’s tendency to remain below this level diverges from previous sharp recoveries, paving the way for new sellers to emerge in the market. Support breakdowns often trigger risk-off behavior among altcoin holders, causing a rapid increase in supply as investors rush to exit.

Indicators further support the bearish scenario for XRP. The downward-sloping 50, 100, and 200-day simple moving averages highlight weakness in both short- and long-term trends. The MACD histogram’s deepening bars below the zero line provide additional signals of increasing downward pressure.

In this context, the $1.63 level emerges as a potential target area. This level corresponds to the 61.8% Fibonacci retracement from the 2024 low of $0.43 to the 2025 peak of $3.66 and is commonly recognized as a significant support area in the markets.

Key Level for Recovery

The downward trend aligns with the ongoing decline since July, with each attempt to rally weaker than the last. To improve buyer sentiment, a decisive MOVE disrupting this pattern is needed. Technically, this equates to reclaiming the peak of the weak response in late November at $2.27.

In the short term, macroeconomic data could also impact pricing. If the U.S. inflation data released today falls below expectations, it could boost global market risk appetite, potentially supporting XRP and other cryptocurrencies. Conversely, data exceeding expectations might fuel risk aversion, making the persistence below $2 more problematic.

The focus in the XRP market is twofold: firstly, identifying where buyers might step in during a potential pullback toward the $1.63 area, and secondly, determining whether closures above $2.27 can reverse the trend. Investors anticipate clearer market behavior in the days following the technical breakdown as volume and momentum direction becomes apparent.