- XRP is struggling to break past the $2.5 resistance level despite positive developments like Ripple’s SEC settlement, with weak market momentum and declining network growth raising concerns of a potential drop to $2 or lower.
- While some investors remain optimistic about long-term gains, bearish pressure and liquidations could drive the token further down in the short term.
Ripple’s XRP has hit a roadblock despite Bitcoin soaring past $85,000. The altcoin has repeatedly failed to break through the $2.5 resistance level, sparking concerns about its future trajectory. With diminishing market momentum and weak investor interest, XRP could be heading for a deeper correction.
Resistance at $2.5: A Major Hurdle
XRP has attempted to breach the $2.5 resistance level twice this month but has fallen short both times. This failure comes even after Ripple’s favorable settlement with the SEC, which initially pushed the token to $2.6 before it lost steam. The inability to sustain this rally raises questions about whether investors are losing confidence.
Is XRP Heading for a Drop?
Currently, XRP is in a consolidation phase, but analysts warn that a deeper pullback is possible. If bearish pressure intensifies, the token could break below its $2.2 support level and potentially sink to $2 or lower. This scenario would trigger liquidations of long positions, adding to selling pressure and exacerbating losses.
While some investors are liquidating their positions, others see this as an opportunity. Black Swan Capitalist co-founder Vandell Aljarrah has expressed disbelief at the current selling trend, maintaining that XRP will reach double digits this year. He argues that the regulatory clarity following Ripple’s settlement with the SEC should be a bullish catalyst rather than a reason to sell.
XRP faces a critical test in the coming weeks. If it fails to regain momentum, a drop to $2 could be inevitable. However, seasoned investors remind the market that patience and resilience often yield rewards. Whether XRP rebounds or sinks lower will largely depend on market sentiment and broader economic conditions.
For now, all eyes remain on the $2.5 resistance level—will XRP finally break through, or is a further correction on the horizon?
