XRP at a Crossroads: Will Ripple Sink Below $2 or Stage a Comeback?

Ripple’s XRP is walking a tightrope as it struggles to hold key support levels. After gaining over 1% in the past 24 hours, the token is attempting to reclaim ground above $2.30. But with a looming bearish divergence in play, many traders are left wondering: Is this just a temporary bounce, or is a deeper drop on the horizon?

XRP Battles to Stay Afloat Above $2.30

XRP’s recent price movement has been a mix of resilience and uncertainty. The altcoin saw a brief rally, pushing it toward $2.30, but the technical landscape remains shaky. Analysts warn that despite small recoveries, the token has shown no definitive signs of a full-fledged bullish breakout.

A crucial factor contributing to this caution is the persistent bearish divergence—a pattern that has been forming for months. While short-term traders may see oversold conditions as an opportunity, the broader trend suggests that XRP could still be vulnerable to further downside.

Key Support and Resistance Levels in Play

A closer look at XRP’s 8-hour chart reveals a crucial battle between bulls and bears. The price recently tested a resistance-turned-support zone in the $2.25-$2.30 range. Despite dipping slightly to $2.23-$2.24, XRP is clinging to this area, attempting to establish a foundation for another move higher.

If XRP fails to hold this support level and flips back into resistance, things could turn bearish quickly. In that case, the next major support zone is between $1.95 and $2.05, a level that could determine whether XRP stays in its current range or takes a deeper dive.

On the upside, a sustained bounce above $2.30 could propel XRP toward resistance at $2.50. However, a more significant challenge awaits between $2.65 and $2.80, where stronger resistance is expected. Traders should temper their expectations, as no clear catalyst suggests an imminent breakout in either direction.

Sideways Price Action: The Calm Before the Storm?

XRP has been stuck in a sideways trading pattern for weeks, frustrating investors who were hoping for more volatility. While many traders see this as a stagnant phase, experienced market watchers know that consolidation periods often precede major price movements.

Historically, when an asset moves within a tight range for an extended period, it tends to break out with strong momentum. The question now is: Will XRP’s next big move be upward or downward?

With no major bullish signals yet, caution is advised. But as seasoned traders know, market sentiment can shift rapidly. XRP is at a critical juncture, and the coming days could define its short-term trajectory. Whether it sinks below $2 or surprises with a bullish reversal, one thing is certain—this is a pivotal moment for Ripple’s native token.