XRP Faces Key Support at $2.00 as Bearish Pattern and Weak Volume Raise Concerns

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• XRP’s Head & Shoulders pattern indicates a bearish reversal with $1.61 as a major support.
• Thin volume and RSI divergence signal dissipating bullish momentum and rising selling momentum.
• There is a need to hold at $2.0, and a breakdown below could see further losses to $1.80 or even lower.

XRP has been experiencing strong price action, recently breaking above $3.50 and moving lower since then. Traders are looking at key support levels, and technicals indicate reversals of the trend.

Head and Shoulders Formation Shows Bearish Trend

The most recent price move of XRP reveals a bearish formation and forms a Head and Shoulders pattern on the daily chart. The pattern consists of three peaks, and the central peak is the highest, indicating a reversal signal.

Charting Guy has analyzed this formation and noted that the price broke below the neckline, leading to a sharp drop. According to him, the left shoulder formed after a strong bullish rally in late 2024, reaching a peak before retracing.

Source: Charting Guy

The head developed as the price surged to a new high, followed by a pullback and a lower high in early 2025, forming the right shoulder. The breakdown triggered a strong selloff, pushing the price below key Fibonacci retracement levels, with 0.786 (1.6124) acting as immediate support.

He also pointed to high levels of resistance at $3.2203 and $3.1447, which are previous highs. In a bounce by XRP, these can act as barriers. Yet another minor resistance in a reversal can be the 0.888 Fibonacci retracement point (2.2744). XRP Price reaction at these levels is being closely watched by traders to determine further action.

Falling Volume and RSI Divergence Raise Red Flags

A significant shift has emerged in XRP’s market structure as price action indicates submerging bullish momentum. The declining volume profile and Relative Strength Index (RSI) convergence indicate increasing selling pressure and reduced buying interest.

Lady M, with additional insights, noted that as XRP crossed above $3.39, volume wound down. Traditionally, declining volume upon price increases normally indicates weaker convictions among the buyers. The RSI has also been stuck in overbought, and there have been several rejection points to suggest significant amounts of resistance.

Source: Lady M

She also observed that the $2.00 support level has held firm, with buyers stepping in at this area multiple times. Each time XRP tested this support, a short-term bounce followed, indicating strong defensive buying. However, continued lower highs suggest that sellers are maintaining control. If XRP breaks below $2.00, further declines toward $1.80 or lower could follow. If buyers maintain support, a relief rally might occur, though resistance remains strong.

Both analysts indicate that XRP is at a critical point, where either support holds or a deeper correction takes place. The coming sessions will be crucial in determining whether XRP stabilizes or continues its downward trajectory.

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