XRP has dropped below $2 and is currently trading at $1.91, down over 10% in the past 24 hours. In the last seven days alone, the token has declined by more than 17%, and the total drop over the past month exceeds 20%.
This correction comes despite the launch of the first U.S. spot XRP ETF, which began trading on Nasdaq last week. Since then, XRP has lost nearly 50 cents of value, largely in line with broader market weakness and ongoing negative sentiment in crypto.
The key question now is whether XRP can reclaim the $2 level. A look at technical indicators may provide insight into the current trend and potential outcomes.
Read also: Bitcoin at 6-Month Low, Crypto Market Cap Falls Below $3T
Table of Contents
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Momentum Indicators
RSI: Oversold
The Relative Strength Index (RSI) is a measure of whether an asset is overbought or oversold. The current 14-day RSI is 30, down from 33 yesterday and 41 a week ago. The shorter 7-day RSI is at 20. These values suggest that XRP is now in oversold territory, with recent price momentum remaining weak.
MFI: Oversold
The Money Flow Index (MFI) also signals an oversold condition. The MFI(14) stands at 17 today, compared to 23 yesterday and 37 one week ago. Despite higher trading volume, the index shows that recent market pressure has been driven by outflows rather than new capital entering XRP.
Fear & Greed Index: Extreme Fear
The overall market sentiment remains negative. The crypto Fear and Greed Index is currently at 14, suggesting extreme fear. This reading has stayed below 20 for most of the past week, indicating persistent caution among market participants.
Read also: Crypto Sentiment at Record Low: Fear and Greed Index Hits 10 for Second Day
Moving Averages
SMA & EMA: Bearish
XRP’s current price is below both its short- and medium-term moving averages. The 9-day simple and exponential moving averages are 2.16 and 2.13, while the 26-day SMA and EMA are 2.33 and 2.29. This alignment typically reflects a bearish structure in the short term.
Bollinger Bands: Oversold
Bollinger Bands measure price volatility and deviation from the average. Today, the lower band is at 1.97, while the upper band is at 2.56. With the current price sitting near the lower band, XRP is technically in an oversold area, although no reversal has been confirmed yet.
Trend & Volatility Indicators
ADX: Moderate Trend Strength
The Average Directional Index (ADX), which tracks the strength of a trend, is at 33. This suggests that the current trend – downward – still has moderate strength.
ATR: Stable Volatility
The Average True Range (ATR), which tracks volatility, remains at 0.17, unchanged from yesterday. Current conditions suggest steady but elevated price swings.
AO: Bearish Momentum
The Awesome Oscillator (AO), used to confirm trend direction, is at -0.27 today. This is down from -0.23 yesterday and -0.03 a week ago, indicating that bearish momentum has continued to increase.
VWAP: Below Average
The Volume-Weighted Average Price (VWAP) is 2.64. With XRP trading below this level, price action is currently below average levels weighted by volume.
Outlook
XRP remains under pressure, and technical indicators currently point to oversold conditions. While such readings sometimes precede a bounce, other signals – such as bearish moving averages, negative momentum, and low sentiment – suggest continued caution.
Despite the introduction of the U.S. spot XRP ETF last week, the token has declined, primarily due to weak broader market sentiment. The $2 level is now a key resistance. Whether XRP can reclaim that mark may depend on short-term changes in risk appetite, as well as the return of positive inflows into the asset.
