As of February 2, 2025, XRP’s price fluctuated between $2.57 and $2.61 in the past hour, with its total market value surpassing $150 billion and a daily trading volume of $12.19 billion. Throughout the day, the crypto currency’s price swung between $2.52 and $2.95, reflecting significant price swings as the market struggled to balance supply and demand.
XRP’S the hourly chart shows a clear downward trend, as prices struggle to keep moving upwards. Supply-side factors are driving the market, leading to a series of lower peaks and troughs. The price faces strong resistance at $2.75, while $2.50 is seen as a weak support level. If the resistance at $2.75 is not broken, the price could drop towards the Fibonacci extension level at $2.40. The relative strength index (RSI) indicates a potential decline if selling pressure continues. At the same time, the moving average convergence divergence (MACD) is in a negative position, supporting a negative outlook for XRP’s future performance.
Looking at the four-hour timeframe, XRP has consistently shown weaker performance compared to important exponential moving averages (EMA) and simple moving averages (SMA), confirming a continuous downward trend. A strong rejection at $2.75 highlights a lack of confidence among buyers, leading to prices moving towards more significant corrections. The $2.50 support level is crucial now; a breach of this level may lead $2.402% Fibonacci retracement level ($3.05), indicating the need for a clear breakthrough above this point to signal a potential recovery. For now, bearish strategies seem favorable, and traders are advised to keep an eye on resistance levels for strategic entries.
Looking at the bigger picture, the daily chart indicates a prolonged downward trend. XRP is facing challenges in surpassing its previous high points, hindered by the 50-day EMA and SMA acting as resistance levels. These obstacles suggest the likelihood of further decline, with potential support levels at $2.14 and $1.59 provided by the 100-day and 200-day averages. If the price falls below $2.50, it could signal a move towards these levels. On the other hand, a daily close above $2.75 may indicate a possible reversal, but confirmation would require consistent buying pressure and a breakthrough above the 50% Fibonacci level at $2.91.
Indicators are sending mixed signals: the Relative Strength Index is near oversold levels despite being neutral, while the Stochastic and commodity channel index show uncertainty. The average directional index suggests a weak trend. The awesome oscillator suggests slight upward momentum, but the MACD supports the overall bearish trend.
The moving averages consistently support selling positions, as the shorter-term 10-, 20-, 30-, and 50-day exponential moving averages (EMAs) and simple moving averages (SMAs) are pointing downwards. However, the longer-term 100- and 200-day averages indicate potential buying opportunities, suggesting that the market’s foundation remains steady. If the price of XRP falls below $2.50, it could test lower support levels, but breaking through critical resistance levels at $2.75 and $2.91 is necessary for a bullish trend. Currently, there is a clear inclination towards caution, as the risks of a downward trend outweigh any fragile optimism.
Jury Returns Guilty Decision
Despite the overall market mood being cautious, there are subtle hints of positivity in XRP’s technical analysis. A strong break above $2.75, followed by a push past the key $2.91 level, could potentially trigger a turnaround, with the Awesome Oscillator’s gentle bullish signal and the steady support from the 100- and 200-day moving averages providing a boost. Investors looking for opportunities to go against the trend may find attractive entry points if buying interest gains enough momentum to overcome selling pressure.
Judgment on the Bear Case
The technical indicators are a sense of caution. Continual struggles to overcome resistance, along with the downward trend shown by moving averages and the bearish signals from the MACD, suggest a clear inclination towards higher risk and lower potential rewards. If the price drops below $2.50, there is a possibility of further decline towards $2.14 or even lower, with the neutral stance of oscillators providing little support. It is advisable to adopt a bearish strategy until there is a significant change initiated by buyers.
