The XRP price slides toward 2 dollars after facing a sharp pullback in recent global trading sessions. Aaryamann Shrivastava reported this Wednesday that the decline intensified bearish sentiment, triggering a wave of panic selling. However, this aggressive movement has pushed the asset into technical oversold territory.
According to analysts, this condition usually attracts buyers seeking short-term recovery opportunities in the market. Selling pressure seems to be reaching a critical point of exhaustion during these hours.
On-chain profit-to-loss volume data shows that losses have dominated activity for twenty days now. Many investors sold during brief rallies hoping to exit the market without further economic damage. As the downtrend persisted, selling pressure increased significantly today to avoid further capital losses for traders. This situation reflects a capitulation phase where weaker holders abandon their positions. Capitulation often precedes a stabilization of the digital asset’s price in the financial market.
On the other hand, the Money Flow Index (MFI) has entered extreme oversold levels recently. This indicator tracks buying and selling pressure using both the price and volume of the cryptocurrency. Historically, similar readings have created tactical entry points for value-oriented participants. While this does not guarantee a total trend reversal, it supports potential XRP price bounces very soon. In this way, supply decreases while demand seeks a new stable balance across exchanges.
Fibonacci levels define critical zones for the asset’s technical recovery
XRP is trading near $2.14 at the time of writing, showing early signs of early recovery. Fibonacci retracement levels provide vital reference zones to determine buyer control. The asset has already established solid support above the 23.6% Fibonacci level. Holding this zone strengthens recovery prospects for both retail and institutional investors. Overcoming key resistances is vital to regain financial market confidence during this specific quarter.
Likewise, to confirm a bullish turn, XRP must flip the 61.8% Fibonacci level, near $2.27, into support. Achieving this milestone would open the path toward $2.41, allowing the recovery of losses recorded during the week. However, downside risks persist if current support happens to weaken suddenly. Crypto market volatility demands constant caution from active traders in the sector. The price seeks to consolidate above the fundamental psychological barrier of two dollars.
Will buyer demand be able to absorb residual supply to avoid a further drop?
Nevertheless, if the 23.6% Fibonacci support fails, the asset could face a new round of selling. In that scenario, the price would retreat toward $2.03, risking the bullish recovery thesis. Therefore, losing that level would likely push the price below the fundamental psychological support of $2.00. Dropping below two dollars would invalidate the immediate technical rally scenario for the token. Investors are closely watching the levels of liquidity across major global exchange platforms.
To conclude, Ripple’s current situation suggests a period of high uncertainty and simultaneous opportunity. The behavior of large holders will be decisive in defining the price trajectory in the coming hours. On the other hand, market sentiment is expected to improve if Bitcoin manages to stabilize at its current levels. All eyes are on the volume of buying entering the XRP ecosystem today. The XRP price slides toward 2 dollars marking a historic decision zone for the asset.
