XRP fell below key price levels but is already showing signs of recovery. Some indicators now suggest that an unexpected rebound may follow.
XRP is currently trading around 2.15 USD, it recently dropped from about $2.65 to just under $2.00 after a major wallet transferred roughly $400 million worth of tokens into exchanges.
That move, combined with increased selling from long-term holders, caused a fast 20% pullback.
The break below $2.20 triggered stop-loss orders and raised volatility. However, buying pressure quickly returned, hinting that the drop may have been temporary.
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Why XRP Dropped: What Caused The XRP Price Decline?
Large-scale selling pushed XRP below important support levels and triggered more downside activity. The price fell from $2.65 to $1.93 in two days, and the 50-day moving average crossed under the 200-day, a signal traders often consider bearish.
In that same timeframe, exchange inflows rose and active addresses dropped 12%, suggesting traders positioned defensively and liquidity moved toward selling, not accumulation.
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Why Analysts Expect A Strong Reversal
Despite the recent swing lower, certain technical indicators now point to potential recovery. Analysts noted a bullish divergence on the RSI while the MACD flattened, suggesting momentum could shift if XRP stays above $1.97.
Previous setups like this have led to rebounds of 8-15% within weeks. Some traders also believe that the heavy whale sale cleared selling pressure, making it harder for bears to push prices much lower. If XRP closes above $2.40, many see targets of $2.80 and even $3.50.
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What to Watch
Support currently sits at $1.97-$2.10. The key resistance to watch is $2.40. A confirmed daily close above that level would signal strength.
Possible targets range from $2.80 to $5.00 if momentum builds.
If you intend to buy XRP, it could be an opportunity to do so at a discounted price from of recent but as always, manage your risk and ultimately, ensure you are happy with the decisions you take.
Conclusion
XRP still carries downside risk, but early reversal signs suggest this dip could lead to a strong comeback if buyers hold momentum above $2.40.
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