Ripple’s XRP has had a rough start to February, losing over 23% in the past seven days and slipping below $2.40. Just last week, XRP was trading above $3, but a sudden market downturn has pushed prices lower, raising concerns among traders.

Despite a failed breakout attempt in mid-January, XRP’s price movement suggests that a major shift could be on the horizon. Some analysts believe the correction could be temporary, with a strong rebound possible, while others warn of a deeper decline if key support levels fail.

So, what’s next for XRP? Will it regain momentum, or is another dip on the way? Let’s break it down.

Why Did XRP Drop?

The entire crypto market has been struggling in recent days, with Bitcoin and other major altcoins facing price corrections. The broader market sell-off has impacted investor sentiment, causing XRP to lose ground.

Additionally, XRP failed to hold its January 16 breakout, leading to a larger pullback. Now, the token is moving sideways, waiting for a catalyst that could decide its next direction.

Can XRP Recover? The Bullish Case

Some analysts believe that XRP’s decline could be a temporary dip before another move upward. If the market stabilizes and buying pressure increases, XRP could regain lost ground.

• If XRP reclaims the $3 mark, it could rally toward $4.20 or even $5 in the short term.
• A major breakout above $6.60 could signal strong bullish momentum, pushing XRP to new highs.

However, for this bullish scenario to play out, XRP needs to hold key support levels and break through resistance at $2.70. A move above this level could confirm that buyers are stepping back in.

Is a Bigger Crash Coming? The Bearish Outlook

On the other hand, some traders warn that the recent drop might be part of a larger correction. If XRP fails to hold above $2.20 or $2.10, it could trigger further selling.

• A break below $1.95 would be a bearish signal, potentially dragging XRP toward $1.20.
• If the broader market weakens further, XRP could struggle to recover in the near term.

This scenario would mean a longer downtrend for XRP, forcing traders to wait for a more stable market environment.

Key Support & Resistance Levels to Watch

• Support Levels: $2.35, $2.22, $2.11, $1.95
• Resistance Levels: $2.70, $3.00, $4.20, $5.00

If XRP stays above $2.35, it may attempt a comeback. But a drop below $1.95 could indicate a deeper correction ahead.

What Would Signal a Bullish Breakout?

For XRP to turn bullish again, traders should look for a break above $2.70. If the price climbs past this level with strong volume, it could signal a potential rally.

Additionally, a shift in Bitcoin’s price could influence XRP’s next move. If Bitcoin regains strength, it might lift the entire crypto market, helping XRP recover as well.

Conclusion: What’s Next for XRP?

XRP is at a critical point in its price cycle. It could either bounce back and push toward $5–$6.60, or it might fall below key support levels, leading to a deeper correction.

For now, traders should watch $2.70 as a breakout point and $2.10–$1.95 as key support zones. Whether XRP moves up or down will likely depend on overall market conditions and investor sentiment in the coming days.