XRP Faces $2 Breakdown Risk Amid Bearish Pressure

XRP is struggling to hold the crucial $2 psychological level as bearish momentum builds. After a firm rejection at the $2.20 resistance zone, the token has entered a downward trend, losing the bullish momentum it gained from an earlier breakout. This resistance also coincides with the top boundary of a descending triangle—a typically bearish pattern unless invalidated by a high-volume breakout.

Currently, XRP is hovering above the 100-day EMA, but with little strength behind the bounce. Trading volume remains low, and momentum indicators like the RSI stay neutral around 45, providing limited support for bullish sentiment. Moreover, there's no clear bullish divergence, weakening the case for a strong recovery in the short term.

Price action suggests compression, and if buyers don’t step in soon, XRP could decline toward the 200-day EMA, which lies near the $2 mark. This level also served as a critical support during the last major correction, adding to its technical significance. A breakdown here could trigger a deeper retracement, potentially eroding bullish confidence further.

Despite an earlier breakout from a falling wedge pattern that hinted at a long-term bullish setup, the failure to break and hold above $2.20 casts doubt on near-term upside potential. Unless XRP quickly reclaims $2.20 with strong volume confirmation, the $2 support may not hold.

With market sentiment shaky and whale activity declining, traders should closely monitor how XRP behaves around the 200 EMA. A decisive breakdown could signal intensified downward pressure, increasing the likelihood of a broader correction.