XRP Drops to $1.97 – Is This the Ideal Entry Point Ahead of a Potential Upswing?

As of April 17, 2025, XRP has experienced a notable decline, reaching a price point of $1.97. Market analysts are debating whether this dip represents a strategic buying opportunity before the next anticipated rally. Given XRP’s historical volatility and recent market trends, investors are closely monitoring key support levels and trading volumes for signs of a rebound. The current price action could attract both short-term traders and long-term holders, depending on broader market sentiment and upcoming developments in the Ripple ecosystem. Technical indicators suggest potential consolidation before a decisive move, making this a critical juncture for XRP enthusiasts.

Key Support Holds At $1.97 – Is XRP Building A Base?

XRP’s pullback to the $1.97 level has brought attention to the critical support zone that may serve as a foundation for the next leg up. Despite broader market fluctuations, price action has shown resilience around this area, with buyers stepping in to defend the level. Historically, $1.97 has acted as a pivotal point during previous rallies and corrections, increasing its significance as a potential accumulation zone.

The Moving Average Convergence Divergence (MACD) indicator is beginning to flash early signs of a potential bullish reversal for XRP. After the recent dip to $1.97, the MACD line is showing signs of converging toward the signal line, hinting that bearish momentum may be losing steam. This subtle shift often precedes a reversal and suggests that buyers are gradually regaining control.

Should the MACD complete a bullish crossover, where the MACD line crosses above the signal line, it will reinforce the argument for a rebound. When paired with XRP’s position above key support, such a signal could confirm that market sentiment is tilting in favor of the bulls. A strengthening MACD histogram, reflecting diminishing downside pressure, would further validate this shift and add weight to the case for an upward move in the coming sessions.

Bulls On Standby: What Needs To Happen For A Breakout

Several key conditions must be met before momentum shifts decisively in the bulls’ favor as XRP’s price action nears the $1.97 support zone. First, XRP needs to firmly establish $1.97 as a solid base, with multiple successful defenses of this level reinforcing buyer confidence. A rebound from this zone would signal underlying strength and provide the first step toward an upside breakout.

Secondly, volume needs to step in. A breakout without a noticeable increase in trading volume risks being a false move. Sustained buying pressure would confirm that market participants are positioned for a trend reversal. Additionally, a decisive break above nearby resistance levels such as $2.25 or higher would invalidate the current consolidation phase and open the door for further gains.

Lastly, indicators like the RSI and MACD must align with the bullish narrative. A rising RSI, without entering overbought territory, and a bullish MACD crossover would solidify the technical foundation for an upward move.