XRP Price Plunges to Early 2025 Levels as Bearish Momentum Builds

XRP has taken a sharp downturn over the past week, currently trading around $2.18 — a price last seen in late 2024 or early 2025. This decline effectively wipes out months of gradual progress and signals a significant shift in market sentiment. After several failed breakout attempts and a prolonged period of consolidation, XRP has fallen back into the range that once fueled its previous bull run, but this time under far less optimistic conditions.

The recent drop can be attributed to the breakdown of a rising wedge formation, a bearish continuation pattern that typically forecasts further declines. Every recovery effort has been capped by the 200-day exponential moving average (EMA), now acting as strong resistance between $2.50 and $2.60. Additionally, the 20-day, 50-day, and 100-day moving averages are trending downward, confirming continued selling pressure across the market.

Trading volume has surged during sell-offs, highlighting that major investors are still offloading positions. The Relative Strength Index (RSI) sits at 36, indicating near-oversold conditions, but this does not guarantee an immediate rebound. Without a clear demand zone beneath current levels, XRP risks revisiting the $2.00 or even $1.80 range if bearish momentum persists.

Although the same zone triggered a major rally in late 2024, market conditions have changed dramatically. Investor confidence has weakened, liquidity has declined, and Ripple’s on-chain activity — including transaction volumes and active payments — has slowed. While a short-term bounce could occur due to oversold conditions, sentiment remains cautious. Unless buying interest returns soon, XRP may continue retracing its steps, revisiting past lows before any meaningful recovery begins.