XRP Tumbles Under $2.30 as Bears Take Control

Ripple’s token hits a rough patch—traders flee as selling pressure mounts. Just another day in crypto’s emotional rollercoaster.

Subheader: The $2.30 support line crumbles like a Wall Street analyst’s credibility during bull runs.

Active sell orders pile up, but let’s be real—this is crypto. Tomorrow’s 20% rebound headline is already queued up.

Recent Price Action: Range-Bound Struggles and Capital Outflows

In April, XRP showed signs of recovery after a steep price drop, reclaiming a key descending trendline that had been limiting its gains. This move initially sparked Optimism that the coin was ready for a bullish rebound. However, rather than pushing decisively higher, XRP entered a sideways trading range, bounded between roughly $2.05 and $2.60.

The mid-point of this range, around $2.27, had served as a significant support and resistance level since March. Unfortunately, XRP recently dropped back below this mid-range zone. At the same time, technical indicators point to mounting selling pressure and capital flowing out of XRP markets.

SEC Review Fuels Speculation but Hasn’t Halted the Decline

Despite a spike in open interest that briefly pushed trading activity close to $5 billion, largely due to the SEC’s formal review of the WisdomTree XRP Trust, the altcoin has struggled to maintain momentum. While this regulatory scrutiny has generated renewed interest and speculative buying, the impact has been muted, failing to reverse the current downward trend.

Technical Indicators Signal Bearish Momentum

Several technical tools confirm that XRP’s price action is tilting bearish:

• Chaikin Money Flow (CMF): At -0.07, the CMF indicates heavy capital outflows from XRP, signaling investors are pulling money out rather than buying in.

• Directional Movement Index (DMI): This measure suggests that a bearish trend is gaining strength, as downward momentum surpasses upward buying pressure.

• On-Balance Volume (OBV): A steady decline in OBV shows volume is heavier on sell orders, further emphasizing selling dominance.

Additionally, XRP’s recent trading activity reveals a pattern of “liquidation clusters,” particularly around $2.05. This price zone represents the last significant liquidity magnet before a potential further decline.

What Could Happen Next? A Test of $2.00 Support

The technical evidence and recent price behavior imply that XRP may revisit the $2.00 to $2.05 range in the near future if selling pressure continues unabated. The cluster of liquidations near $2.05 acts as a critical support level, but if breached, it could open the door for further declines.

Traders should watch this zone closely as a break below $2.00 might trigger another wave of stop-loss orders and accelerate the downward momentum. Conversely, any bounce from this level could signal a short-term bottom and possibly lead to a consolidation phase.

Broader Crypto Market Context: Bitcoin’s Influence

XRP’s struggles cannot be viewed in isolation. Bitcoin (BTC), the market leader, has shown weakening short-term momentum, which often sets the tone for altcoins like XRP. When Bitcoin’s price stagnates or falls, altcoins typically face increased selling pressure as investors shift toward safer assets.

The broader cryptocurrency market’s overall health will play a significant role in XRP’s next moves. If Bitcoin manages a strong rebound, XRP might find support to halt its slide. If Bitcoin continues to weaken, however, XRP and other altcoins could face extended declines.

Final Thoughts: Cautious Trading Recommended

While XRP’s recent price drop below $2.30 raises concerns, the cryptocurrency still trades within a relatively defined range. Traders and investors should remain cautious and monitor key technical levels carefully, especially around $2.05 and $2.00.

The ongoing SEC review adds an additional LAYER of uncertainty. Regulatory decisions or updates could significantly impact XRP’s price either positively or negatively in the weeks ahead.

For now, market participants should be prepared for volatility, keeping an eye on volume trends, liquidation zones, and broader market signals before making major moves.