TLDR
- XRP currently trading near $2.07, breaking below a major ascending trendline
- Critical support between $1.97-$2.00 serves as final defense for bulls
- Analysts predict potential surge to $5-8 by late 2025 despite current weakness
- Ripple’s SEC settlement viewed as long-term positive catalyst
- ETF approval in 2025 could dramatically increase institutional demand
XRP is facing intense bearish pressure as it trades below key support levels. The digital asset has recently broken through an important ascending trendline, signaling a potential shift in market momentum. Despite the current downtrend, some analysts remain optimistic about XRP’s long-term prospects, with ambitious price targets for late 2025.
The token is currently trading around $2.07, testing support at the lower Bollinger Band near $2.05. This recent price action follows multiple rejections from the $2.20-$2.30 zone, which has transformed into a strong resistance area.
Technical indicators aren’t looking favorable for XRP in the short term. The Ichimoku Cloud setup appears structurally weak, with price action below the cloud. Both the Tenkan-sen and Kijun-sen lines are providing immediate resistance at $2.13 and $2.12 respectively.
Adding to the bearish outlook, the EMA cluster that includes the 20, 50, 100, and 200-period moving averages is sloping downward. Volume has also declined in recent trading sessions, weakening the potential for a quick reversal without a major catalyst.
From a daily perspective, the horizontal zone between $1.97 and $2.00 represents a crucial support level. This range has historically triggered strong rebounds, but repeated tests suggest increasing vulnerability.
Technical Outlook Remains Bearish Short-Term
If XRP closes below $1.97, it could trigger a deeper decline toward $1.80, with $1.60 as a further downside target should market sentiment continue to deteriorate. For any recovery attempt to gain traction, bulls would need to reclaim $2.30 and break above the $2.56-$2.60 region.
The presence of a descending triangle pattern on the daily chart reinforces the bearish bias. This formation typically suggests continued downward movement unless invalidated by a breakout above the upper trendline.
On the weekly timeframe, XRP is trading within crucial resistance and support zones, which correspond to the tops of 2018 and 2021 respectively. The contraction in trading volume suggests a potential explosive move may follow soon.
While the MACD indicator shows growing bearish influence, other indicators like DMI and CMF display the possibility of a rebound. The ADX has already triggered a recovery signal, which could further assist in a bullish crossover.
Long-Term Catalysts Could Drive Recovery
Despite the current price weakness, several factors could drive XRP higher in the coming months. The recent resolution of Ripple’s legal battle with the SEC is seen as a major win for the crypto community, with potential long-term positive implications for XRP.
Analysts remain divided on XRP’s future price action. Some predict a rise to $3 before the end of Q2 2025, while others have more ambitious targets. One well-known crypto analyst has projected a bullish breakout that could push XRP between $5.85 and $8.07 in the coming months.
The potential approval of an XRP Exchange-Traded Fund (ETF) in the U.S. is viewed as a major price catalyst. The SEC’s decision to drop its appeal against Ripple has increased speculation about regulatory clarity, with some analysts assigning an 85% probability of an ETF launch in 2025.
Beyond ETF speculation, Ripple’s expanding network of partnerships continues to reinforce confidence in XRP’s long-term value. The company recently announced a collaboration with Chipper Cash to enhance cross-border payments in Africa, potentially increasing XRP adoption for real-world use cases.
For the immediate future, the possibility of a rise to $3 via the $2.5 resistance remains valid as long as XRP holds above $2. However, a drop to $1.80 may not necessarily indicate a bearish trend, as a rebound from the 2021 highs could potentially elevate XRP to form a new all-time high in 2025.
