The cryptocurrency market is currently experiencing heightened volatility, with many top tokens losing crucial support levels. XRP, one of the largest altcoins by market capitalization, has not been spared from this bearish trend. Despite increasing discussions around the possibility of an XRP ETF, the token has failed to gain upward momentum, leading to a sharp decline in price.

Over the past 24 hours, XRP has dropped by approximately 3.5%, bringing its price down to around $2.25 at the time of writing. Trading volume has surged to $7.48 billion, indicating significant market activity, yet the selling pressure remains dominant.

This decline comes as bearish indicators continue to weigh on the token, raising concerns about whether XRP could fall further or rebound from its current levels.

XRP Struggles Below $2.50 as Bearish Indicators Dominate

XRP has been unable to break past the $2.50 resistance level, which has proven to be a major hurdle in recent weeks. Several technical indicators suggest that selling pressure is overpowering bullish sentiment, signaling a potential continuation of the downtrend.

1. Simple Moving Average (SMA) – The SMA trend has turned bearish, providing strong resistance to XRP’s price recovery. Every attempt to break higher has resulted in a quick rejection.
2. MACD (Moving Average Convergence Divergence) – The MACD indicator is deep in negative territory, with the red histogram expanding. This suggests that bears are firmly in control, and further losses could be ahead.

With these indicators flashing warning signs, the possibility of a deeper correction cannot be ruled out.

Short Sellers Dominate: Will XRP Drop to $1.90?

One of the biggest factors contributing to XRP’s decline is the surge in short positions. Data suggests that over $111 million worth of XRP short trades are currently active, putting additional downward pressure on the price.

When short positions increase significantly, it indicates that traders are betting on further declines. If bears maintain control, XRP could soon test its next major support level at $2.00. A failure to hold this level could open the doors for an even steeper drop toward $1.90.

On the flip side, if XRP manages to break past $2.50, it could regain bullish momentum and push toward $3.00. However, the road to recovery remains uncertain as long as bearish sentiment persists.

XRP ETF Speculation: Can It Save the Price?

One of the major topics fueling discussions in the XRP community is the potential for an XRP exchange-traded fund (ETF). Multiple ETF filings have been submitted, and investors are closely watching for regulatory developments.

While an XRP ETF approval could be a game-changer, the uncertainty surrounding it has contributed to the current market hesitancy. Investors are waiting for clearer signals before making larger moves. Until then, XRP’s price action is likely to remain choppy.

What’s Next for XRP?

If XRP can reclaim the $2.50 level, it may signal a shift toward bullish momentum, potentially paving the way for a rally to $3.00. However, if the selling pressure continues, the token could drop further to $2.00 or even $1.90 in the short term.

For now, XRP remains stuck in a battle between bulls and bears, with market sentiment heavily leaning toward the downside. Investors should watch key support and resistance levels closely before making their next move.