The volatility in the stock markets has had a negative impact on the crypto markets, which were previously thriving. This shift in market dynamics highlights the disproportionate influence of institutions over the markets. Meanwhile, XRP, once considered a ‘centralized token’, is now showing divergence from the top two tokens. The XRP price is currently hovering above a crucial level, with a potential rebound pushing it back above $2.8; however, a significant pullback could be on the horizon.
Since President Trump’s approval of a Bitcoin strategic reserve, there has been a surge in demand for an XRP reserve as well. Speculation about the token becoming a U.S. reserve asset has also contributed to keeping the price above the bearish range. Despite trading within a critical range, bullish efforts are being made to maintain the price above the barrier.
Will XRP drop below $2 and reach $1.5, or will it rebound above $2.5?
The XRP price has reached the neckline of a head and shoulder pattern, indicating a potential shift towards bearish dominance. Despite recent rebounds, the supertrend has turned bearish, with the RSI showing a bullish divergence but remaining below the descending trend line. There is fear that the XRP price could break below support to alleviate selling pressure, as bears have been attempting to push the price below $2 since December 2024.
Despite the price fluctuations, the XRP price remains under bullish influence due to overall market sentiment. As the third largest cryptocurrency, XRP has benefited significantly from Trump’s victory. Surging over 336% after Hedera and Mantra, XRP has outperformed other popular tokens. With strong support above $2, trader sentiment remains bullish despite increasing bearish pressure in the markets.
Therefore, it is anticipated that the XRP price will consolidate before experiencing a bullish breakout above $2.5.
