The crypto market has entered a quieter phase after last week’s extreme volatility, but the tension hasn’t disappeared. Prices remain under pressure as traders weigh the impact of renewed U.S.–China trade friction, the fallout from massive liquidations, and uncertainty around the Federal Reserve’s next policy moves.
Amid all this, XRP is showing a mixed picture. The token has managed to recover from a 40% crash, yet it’s still moving cautiously near critical support levels – suggesting investors are waiting for a clearer signal before making their next move.
Read also: Can XRP Reach $10? A Serious Look at the Numbers
Technical Picture: XRP Nears Oversold Territory
XRP is currently trading around the $2.46 Fibonacci support, a zone that has drawn attention from traders watching for a potential reversal. The RSI(14) at 38 and RSI(7) at 37 place the asset close to oversold territory, signaling that selling momentum might be losing strength. This often creates conditions for short-term rebounds, though the confirmation must come from stronger trading volumes.
The price’s proximity to the lower Bollinger Band at $2.36 also adds to the case for possible stabilization. Historically, this level tends to act as support when bearish momentum begins to fade. For now, the market seems to be consolidating, with buyers cautiously stepping back in after the flash crash. Still, XRP’s recovery remains fragile, and a break below this zone could open the door for another downward move.
Read also: How to recognize a crypto presale scam? Full guide
Market Context: Fear Still Dominates
The broader backdrop is far from calm. The Fear and Greed Index continues to reflect fearful sentiment, showing that traders remain hesitant after the shock of record liquidations.
On the macro front, U.S.–China tensions and mixed signals from the Fed are keeping risk appetite low. While equities have stabilized slightly, investors are still adjusting to the possibility of new tariffs and slower global growth.
Read also: How To Use Crypto Fear and Greed Index To Your Advantage?
For XRP specifically, there’s also attention on Ripple’s ongoing business developments. The company’s effort to secure an operational license in Luxembourg could open new opportunities across the European Union. Meanwhile, the recently launched “Attackathon” bug bounty with Immunefi aims to strengthen the upcoming XRPL lending protocol – signaling Ripple’s focus on building through the uncertainty.
What’s Next?
The RSI readings suggest room for a short-term rebound, but momentum remains weak and traders are still cautious. A close below $2.36 would likely signal further downside, while any bounce significantly above $2.50 could help rebuild confidence.
