XRP has faced a sharp decline, tumbling 26% in just four days and landing at a critical support level of $2.17. The sudden drop has left traders questioning whether this is a temporary correction or the start of a deeper downtrend.

Despite the setback, XRP has been in a long-term uptrend, suggesting that this pullback could be a normal market reset rather than a collapse. However, the cryptocurrency’s next move depends on key support and resistance levels. Here are three possible scenarios that could play out in the coming days.

Scenario 1: A Strong Rebound Toward Higher Levels

If the $2.17 support holds, XRP could stage a recovery, pushing back into the $2.60–$2.73 range, where the 50-day Exponential Moving Average (EMA) currently sits.

A bounce from this level would indicate renewed buying interest, potentially setting XRP up for another run toward the $3.00 mark. This scenario would require a shift in market sentiment, possibly driven by increased institutional interest or a rally in Bitcoin, which often influences altcoins like XRP.

Signs to watch for:

• A sharp increase in trading volume
• Strong green candles on the 4-hour and daily charts
• A break above $2.40, signaling further momentum

If XRP manages to regain strength, it could reclaim lost ground and continue its long-term bullish trajectory.

Scenario 2: Sideways Consolidation Before the Next Move

If buying pressure remains weak, XRP could stall between $2.17 and $2.40, entering a sideways consolidation phase.

In this case, the price would fluctuate within a tight range as traders wait for a clear breakout signal. This kind of movement isn’t necessarily bearish, but it does indicate uncertainty.

A consolidation phase could last anywhere from a few days to several weeks, depending on overall market conditions. During this period, investors would likely watch for any breakout or breakdown before making significant moves.

Key factors to monitor:

• Low volatility and reduced volume
• Resistance at $2.40 and support at $2.17
• Breakout triggers like positive news, increased liquidity, or broader market shifts

A prolonged sideways trend often leads to a sharp move in either direction, so traders should be prepared for increased volatility once a breakout occurs.

Scenario 3: A Breakdown Below $2.17 – More Losses Ahead?

The most bearish possibility would be XRP failing to hold $2.17, leading to further declines.

If sellers take control, XRP could drop toward $2.00 or even $1.85, testing lower support zones. A breakdown at this level would indicate a larger market correction, possibly triggered by:

• A broader crypto market downturn
• Increased regulatory pressure on XRP
• Reduced trading volume, signaling weak buying interest

For XRP to avoid this outcome, buyers need to step in quickly and decisively to defend the current support level. Otherwise, a deeper correction could push the asset into bearish territory.

What Should Traders Expect?

At this stage, XRP is at a crossroads. A rebound could set the stage for a recovery, but if buying interest remains weak, consolidation or further decline may follow.

Traders should closely watch volume, price action, and key resistance levels to determine the cryptocurrency’s next direction. Whether XRP makes a comeback or dips further, one thing is certain—the coming days will be critical.