XRP, the cryptocurrency associated with Ripple Labs, has encountered significant challenges in recent days, with the token unable to maintain its vital support level at $2.50. Amidst a broader downturn in the cryptocurrency market, XRP has adopted a bearish trajectory. According to technical analysis, if XRP remains below this key level, it could experience a drop of up to 13%, potentially heading toward $2.10 in the near future.

Bearish Technical Breakdown

XRP’s recent price action has raised concerns among traders. The cryptocurrency has broken below an ascending triangle pattern on its four-hour chart, a technical setup that usually indicates upward momentum. However, with the breakdown, the pattern’s typical bullish implications have been invalidated, signaling a shift in market sentiment.

This breakdown is further confirmed by XRP’s failure to hold the $2.50 support level. A decisive close below this crucial price point suggests the market sentiment is turning bearish, and unless XRP can reclaim this level soon, further losses could be on the way.

XRP is currently trading below its 200 Exponential Moving Average (EMA), a key technical indicator that shows the asset is in a downtrend. The fact that it’s trading beneath this average suggests that bearish forces are in control, increasing the likelihood of a continued decline.

Current Price and Market Activity

XRP is trading at approximately $2.46, having dropped by over 3.80% in the past 24 hours. However, the trading volume during this time has surged by 100%, an indication that market participants are reacting strongly to the price action. This dramatic volume increase is not necessarily a positive signal; it typically occurs when traders anticipate a breakout or breakdown, seeking to capture significant price movements.

In this case, the volume surge is likely tied to the breakdown from the ascending triangle, and traders appear to be positioning themselves in anticipation of further declines. The increase in volume confirms that there’s heightened market participation, but it doesn’t suggest that a rebound is imminent.

$15 Million XRP Outflow Raise Hope for Support

Despite the bearish technical indicators, there’s a noteworthy development: XRP has experienced an outflow of $15 million from exchanges over the past 24 hours, according to on-chain data from Coinglass. This outflow suggests that some investors, particularly long-term holders, are accumulating XRP while the price is lower, following a common strategy known as “buy the dip.”

Outflows from exchanges often indicate that tokens are being moved into private wallets, suggesting that investors are not looking to sell in the short term. Instead, they may be positioning themselves for a potential recovery in the future. This accumulation could help mitigate some of the selling pressure and slow down the decline.

The Path Forward for XRP

Looking ahead, the key level to watch is the $2.50 support. If XRP fails to break back above this level, the likelihood of a drop to $2.10 increases. However, the $15 million worth of XRP leaving exchanges could provide a cushion for the price, especially if accumulation continues in the coming days.

If market sentiment shifts and more investors step in to buy the dip, XRP could experience some relief. However, without a clear reversal in the broader market or a reclaiming of the $2.50 support level, the path to $2.10 remains a real possibility.

For traders and investors, the coming days will be critical to watch. The convergence of increased trading volume, ongoing bearish price action, and the potential for accumulation could determine whether XRP is at the beginning of a larger decline or preparing for a rebound.