XRP fell back under the psychologically important $2 mark after a fresh recovery attempt was rejected, driven by macro risk-off flows and a technical breakdown that amplified liquidations. The move leaves short-term sentiment decisively bearish and raises immediate questions about whether price can hold above nearby supports.
A new tariff threat on the European Union and delays around U.S. regulatory progress for crypto contributed to an uncertain backdrop, prompting capital to rotate into traditional havens and away from risk assets. That macro swing coincided with heavy selling in XRP, where derivatives data showed long-side positions bore the brunt of losses.
On-chain flows remained negative, consistent with distribution rather than accumulation. Traders described recent rallies as corrective — opportunities to de-risk — rather than signs of renewed conviction, a dynamic that reinforced the selling cycle.
The rejection followed a sharp intraday flush that pushed XRP into the $1.90–$1.96 range, a drop that traders said was intensified by long liquidations and broad distribution across spot balances.
Technical picture and key levels
Technically, XRP traded below several key moving averages that are now acting as layered resistance. The 20-day EMA sat near $2.05, the 50-day EMA around $2.07 and the 100-day close to $2.19, with the 200-day EMA overhead near $2.31. Momentum indicators were tilted toward sellers: the RSI was around 44 and the MACD maintained a sell signal with widening negative histograms, indicating persistent downside momentum.
Volume and open interest will be critical to any change of character. A sustained reclaim of the $2.05–$2.10 area accompanied by rising volume and growing open interest would be required to shift the bias away from defensive selling.
For traders and treasuries, the episode is a reminder that leverage amplifies losses: long liquidations accelerated the move and left a weaker price structure. Risk management remains paramount while sell-side pressure dominates order flow.
Investors are now watching whether XRP can reclaim the $2.05–$2.10 zone with conviction; that recovery, supported by rising volumes and open interest, will determine if the market can halt further decline or if sellers will drive price toward the lower support bands.
