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XRP has hit a critical barrier as sellers pushed the price below the $2.3 mark, halting bullish momentum and casting doubt on the token’s ability to sustain upward movement. While recent rallies managed to briefly lift XRP above $2.5, each of these moves was followed by sudden inflows that reversed gains just as quickly. The result is a price chart marked by volatility, failed breakouts, and increasingly cautious sentiment from market participants.
Currently, XRP is struggling to regain footing after falling below the $2.3 level, which now appears to have flipped into resistance. The price was attempting to retest this level at press time, a move that aligns with prior expectations based on technical and on-chain indicators. Unfortunately for bulls, the current outlook points toward increased bearish pressure and a potential continuation to lower support levels.
On-chain data presents a mixed picture. A closer look at activity on the XRP Ledger shows that the number of Active Addresses has been declining throughout 2025. While this downtrend appears to have slowed in recent weeks, the longer-term trajectory remains bearish. For long-term investors, this indicates declining user engagement and participation—factors that typically correlate with reduced demand and limited upside potential.
Another important signal comes from XRP’s exchange reserve data. Exchange reserves on Binance have been trending lower since November 2024, a generally bullish signal suggesting accumulation and movement to cold storage. However, unlike Bitcoin’s steady reserve drop, XRP’s pattern has been more erratic. Sharp spikes in reserves were observed in March and May, each coinciding with significant price sell-offs. These inflows suggest that holders have been moving tokens onto exchanges to sell into rallies, which helps explain XRP’s failure to maintain higher price levels.
Despite these concerns, there are signs of strength in spot buying activity. The Spot Taker Cumulative Volume Delta (CVD), a measure of whether buyers or sellers dominate, flipped bullish in late May. Since the 21st of May, Taker Buy Volumes have outpaced sell volumes, indicating that spot market participants are growing more confident. While this does not guarantee a price rally, it does signal a shift in sentiment that could support future upward moves if sustained.
Still, traders must remain vigilant. Coinglass data from the 3-month liquidation heatmap shows a dense cluster of liquidity around the $2 level. This psychological support zone has built up significant interest since mid-April, and could attract price action if current resistance holds. Liquidation levels often act as magnets during times of volatility, and with XRP hovering below its mid-range of $2.3, a further dip toward $2 looks increasingly possible.
A small pocket of liquidity also exists around $2.36, which could serve as a short-term magnet and draw prices upward briefly. However, analysts warn against interpreting such a move as the beginning of a sustained uptrend. Instead, they urge caution, noting that a bounce above $2.3 may not hold unless supported by a clear shift in underlying market structure.
If XRP continues to slide, key levels to watch are $2 and $1.95. These areas represent stronger support zones, both technically and from a liquidation standpoint. If the spot market maintains its buying dominance through the Spot Taker CVD, these levels could offer high-reward entry points for patient buyers waiting for confirmation of a bottom.
In summary, XRP is at a pivotal moment. The rejection at $2.3 underscores lingering bearish pressure, while on-chain indicators paint a cautious but not entirely negative picture. With dense liquidity pockets forming near both $2 and $2.36, the token’s next move could be sharp in either direction. For now, bulls must work to reclaim and hold $2.3, or risk further downside in the coming sessions.
