Rabat – XRP is showing fresh signs of weakness after falling below the key $2 price level, a support zone that had held firm for months.
The sustained move under this threshold has raised concerns among traders that the cryptocurrency could be heading for a deeper decline, even as some macroeconomic factors offer a slim chance of short-term relief.
The token, commonly associated with Ripple’s cross-border payment technology, slipped below $2 over the weekend and has remained there for several consecutive sessions. This marks a shift from earlier price behavior.
Since January, XRP had briefly dipped under $2 multiple times, but those moves were short-lived, with prices quickly bouncing back in sharp recoveries. This time, the rebound has not materialized.
Market analysts often compare the break of a major support level to a dam giving way. Once that level fails, sellers who were holding on tend to rush for the exit at the same time.
This can overwhelm buyers and push prices down faster than expected. That dynamic now appears to be playing out in XRP’s chart.
Several technical signals are reinforcing the bearish view. XRP is trading below its 50-day, 100-day, and 200-day simple moving averages, all of which are sloping downward.
These averages are widely used to assess both short-term and long-term trends, and their current alignment suggests selling pressure remains dominant.
Momentum indicators are also pointing lower. The MACD histogram, which helps track changes in market strength, continues to print deeper readings below zero. This indicates that downside momentum is not only present but increasing.
Why traders are watching the $1.63 level
With the $2 support now broken, attention is shifting to the next potential downside target near $1.63. This level corresponds to a commonly watched Fibonacci retracement, calculated from XRP’s rise from around $0.43 in 2024 to its peak of $3.66 in 2025.
In financial markets, this retracement level is often seen as an area where prices may attempt to stabilize.
Despite the gloomy technical picture, some traders are watching broader economic developments for possible relief.
US inflation data due later this week could influence market sentiment. If inflation comes in lower than expected, investors may be more willing to take risks, which could support cryptocurrencies, including XRP, at least temporarily.
Still, the broader trend remains negative. XRP has been in a steady downtrend since July, with each bounce weaker than the last. This pattern suggests buyers are losing confidence and stepping in at lower and lower levels.
For the outlook to improve meaningfully, bulls would need to break this pattern. That would likely require XRP to climb above $2.27, the high reached during its most recent rebound attempt in late November.
Until then, analysts say the risk remains tilted to the downside, with further losses possible if selling pressure continues.
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