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The cryptocurrency market has entered a tense phase this week, and XRP is one of the assets under the spotlight. After maintaining strength through most of 2025, the coin has now shifted into a retracement phase, losing nearly 19% of its value since October 27. Even though the downturn is not unique to XRP, the coin’s strong late-2025 rally has left many recent entrants in vulnerable positions, and market sentiment has turned cautious.
What stands out in the current price movement is not just the decline itself but how closely the asset is hovering near important support zones. Traders and analysts are watching the charts closely as multiple timeframes begin to align, pointing to a bearish setup that has not been seen in months.
Weekly Indicators Show a Retracement, Not a Collapse
Zooming out to the weekly chart provides important context for the present decline. Despite the recent selloff, XRP’s macro structure has not yet flipped bearish. The cryptocurrency continues to hold above its higher low of $1.61, a level that has been widely recognized as the line separating a retracement from a deeper structural breakdown.
On the same timeframe, the Fibonacci retracement measurements tell a more cautious story. The asset has already fallen through the 78.6% retracement level at $2.28 — a threshold that historically tends to keep long-term bullish momentum intact. Losing this level is considered the first major technical warning sign for the trend.
Momentum indicators have also shifted. The weekly RSI has dropped under the midpoint, showing that sellers currently hold the upper hand. However, the On-Balance Volume has not yet shown severe outflows, suggesting that long-term holders have not abandoned the asset and selling may be largely short-term profit-taking.
Persistent Resistance on the Daily Chart Keeps Bulls on the Defensive
A look at the daily timeframe reveals significant information about how market participants are positioning. The $2.7 region, which originated from a major liquidity shift after the drop on October 10, has become a supply zone that XRP has failed to overcome despite multiple retests. Every attempt to climb past this level has been met with strong sell pressure, forming a ceiling that has repeatedly halted momentum.
The daily price structure remains bearish as long as the market stays below $2.06. Traders describe this level as the threshold that could determine whether XRP finds renewed support or continues to slide. If the price closes a daily session under $2.06, it would confirm a continuation of the downward structure and likely invite more selling.
Until that point, analysts argue there is still a narrow window for a recovery — though the room for optimism remains limited.
Short-Term Traders Are Watching the $2.06 to $2.15 Zone Closely
The 4-hour chart offers the clearest picture of immediate market expectations. The region between $2.06 and $2.15 has become a key defensive area for buyers. So long as XRP stays above this zone, short-term recoveries remain possible.
Below this level, trader sentiment changes quickly. Liquidity data shows a large concentration of stop-loss orders around $1.97 to $2.01, meaning this zone is vulnerable to rapid selling if price tests it again. If the 4-hour chart closes below $1.97, the sell-off could accelerate, potentially pushing XRP toward $1.90 and, in a deeper correction, to $1.61.
Many analysts caution that a decisive breakdown does not necessarily indicate a collapse for the asset. Instead, it would likely serve as a continuation of the broader retracement phase that began last month.
Traders Remain Divided on Short-Term Outcomes
Market participants are currently split into two camps. Short-term traders are preparing for more volatility and are positioned to enter short trades if the price closes under $2.06 or $1.97 on their respective timeframes. Long-term investors, however, are focusing on the larger weekly structure and observing whether the $1.61 level remains intact over the coming months.
Some analysts point out that high selling pressure is often found near cycle retracements. Large-scale investors tend to accumulate when the majority of late buyers exit at a loss — a pattern that has appeared repeatedly in previous cycles across Bitcoin, Ethereum and XRP.
Outlook: Stability in the Long Term, Caution in the Short Term
In the coming days, the market’s reaction to the $2.06 zone is likely to determine XRP’s next direction. A bounce from this area could give traders a temporary window for recovery attempts, while a breakdown could invite a continuation of the bearish phase already underway.
Regardless of short-term volatility, market fundamentals beyond the price chart remain intact. XRP’s long-term technical structure has not fully broken, and large holders have not shown significant signs of exit. The question is not whether XRP has long-term support — it is whether traders will have the patience to wait for the next trend to form.
For now, XRP sits at a crossroads between market caution and structural resilience. The next few daily sessions may bring clarity to which direction takes control.
