XRP Price Looks to Retest $2.00 as Bearish Momentum Rises: Is the Bottom Near?

XRP is currently nearing the $2.00 support level after facing rejection at the vital resistance of $2.72. There are growing signs of bearish momentum, but a potential bottom may be forming.

Key Takeaways

XRP is hovering around the key support level of $2.00.
The asset faced resistance at $2.72, signaling a substantial decline.
Early indicators show potential demand at the $2.00 level, raising hopes for a bottom formation.
Maintaining support at $2.00 is critical for a possible upward movement back to $2.72.

XRP is making its way towards an important retest of the vital $2.00 high-timeframe (HTF) support following a significant drop from the resistance level of $2.72. Although recent movements reflect a downward trend, early signs of demand are emerging around this psychological threshold, generating speculation about whether a bottom could form soon.

XRP price trades towards $2.00 hinting towards potential bottom

Technical Analysis of XRP Price

XRP price eyes $2.00 retest as bearish momentum increases, is the bottom close? - 1
XRPUSDT (1D) Chart Source: TradingView

After being unable to breach the $2.72 resistance, XRP has experienced a pronounced downward shift, nudging prices closer to the pivotal $2.00 HTF support. This area is essential for buyers who need to engage and uphold price stability. So far, two consecutive candle closes have remained above this level, indicating local demand despite broader market pressures skewing bearish.

The $2.00 level also holds psychological importance, serving as a potential accumulation base. If XRP continues to close above this price point, the chances for a price reversal or a rotation back toward $2.72 remain promising. Should this scenario occur, XRP might develop a mid-range consolidation pattern, potentially paving the way for a breakout rally.

For this optimistic scenario to evolve, XRP needs to establish a clear bottoming structure at its current price. Signs of accumulation—like multiple higher lows or recovering short-term moving averages—would indicate buyers are regaining their footing. However, the lack of substantial bullish volume continues to impact sentiment negatively, making future daily closes critical for verifying this trend.

The larger market context remains bearish in the short run, yet the presence of support-driven candles and reduced volatility suggests that selling pressure may be easing. If buyers can maintain a stronghold above $2.00, this region could lay the groundwork for the next upward trajectory.

Future Price Action Expectations

In the immediate future, XRP needs to secure the $2.00 support to keep any hopes alive for a price reversal. If it closes below this critical level, the current accumulation theory would be invalidated, potentially exposing deeper downside targets.

On the other hand, successfully holding the $2.00 area could initiate a stabilization phase, eventually leading to a rally back toward the next significant target of $2.72.