- XRP has dropped 11% in a week, struggling to hold key support despite the strong launch of a new U.S. spot XRP ETF.
- If current support fails, the price could fall below $2.0 and retest $1.96.
XRP is under intense pressure this week as the crypto market experiences renewed weakness. Despite strong institutional developments, including the launch of a spot XRP ETF in the United States, the coin has continued to decline, raising questions about whether it can reclaim the $2.5 level anytime soon.
XRP Decline Deepens Despite New ETF Launch
XRP has fallen 11% over the past seven days, slipping further after losing grip of the crucial $2.5 support level. This decline comes even as Canary Capital’s newly launched spot XRP ETF (XRPC) recorded an impressive $58.6 million in first-day trading volume—far surpassing the anticipated $17 million.
However, the positive ETF news did little to improve price action. Mixed institutional sentiment coupled with heightened macroeconomic uncertainty continues to weigh on the crypto market. With Bitcoin showing increased volatility and overall sentiment remaining in the fear zone, XRP has struggled to attract fresh buying interest.
Derivatives market data reflects the pressure as well. Over the last 48 hours alone, more than $28 million in XRP long positions have been liquidated, further reinforcing seller dominance.
Testing Key Support: Is a Drop Below $2.0 Possible?
Although the daily chart maintains a long-term upward structure, sellers remain in control in the short term. Last week, XRP was rejected at the 50-day EMA near $2.49, triggering the ongoing slide. The coin now trades around $2.27, hovering just above a critical support zone.
Technical indicators offer mixed signals. The Relative Strength Index (RSI) currently sits at 42—below the neutral mark of 50—indicating that bearish pressure is fading slightly but not fully neutralized. For XRP to stage a meaningful rebound, the RSI will need to break above the 50 level.
Meanwhile, the MACD remains on the negative side, showing that downward pressure persists even as buyers attempt to stabilize the price.
If XRP sees renewed buying strength, the next key resistance lies around $2.55 at the 50-day EMA. Breaking above this level could support a push back toward the $2.5 region.
However, failure to hold above the current support could send XRP below the psychological $2.0 threshold. If that happens, the next significant support sits at $1.96—an area that may determine whether the asset enters a deeper corrective phase.
XRP now stands at a crucial crossroads. Whether it rebounds or breaks lower will depend on broader market conditions, renewed investor confidence, and its ability to recover key technical levels.
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