XRP price struggles at 200-MA, signals buyer exhaustion and downside risk
XRP price continues to show weakness, struggling below the 200-day moving average and failing to reclaim the critical $2.72 resistance zone. Key support at $2.20 is at risk of being retested, with bearish momentum dominating and low-volume bounces signaling a lack of bullish conviction. Unless XRP surpasses $2.72 with strong buying volume, further downside toward $2.20 and potentially lower levels remains likely.
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XRP Struggles with 200-Day Moving Average
XRP price is struggling to reclaim the 200-day moving average (200 MA), signaling clear signs of buyer exhaustion. This struggle has reinforced signs of weakness and the growing risk of a downside move toward the $2.20 support level. Despite multiple attempts, XRP has failed to reclaim this critical technical level, which has consistently acted as a significant resistance barrier during its recent downtrend.
Resistance and Support Key Levels
Major Resistance: The $2.72 resistance zone, which coincides with the 200-day moving average, 0.618 Fibonacci retracement, and the historical value area low from the previous trading range, has repeatedly rejected XRP's price. These overlapping technical patterns often generate strong rejections, and XRP’s recent failure near $2.72 underscores this dynamic.
Primary Support: The $2.20 level remains the crucial high-timeframe support preventing a deeper price breakdown. If this level fails to hold, the price will likely drop further.
Signs of Market Exhaustion
Recent price behavior for XRP reflects clear signs of market exhaustion. After failing to break above the 200-day moving average, XRP produced a new swing low, further solidifying the bearish market structure. Although the price has initiated a temporary bounce, its low-volume nature highlights that buyers are not committing fully, suggesting a lack of bullish conviction.
Broader Downtrend Remains Intact
The current bounce toward the $2.72 resistance zone appears corrective rather than impulsive, which suggests the broader downtrend remains intact. Unless bullish momentum pushes XRP above the 200 MA with strong volume, another rejection is likely. This would establish a lower high and likely lead to a continuation down toward the $2.20 support level.
Potential Outcomes and Risks
If weakness persists, XRP is most likely to revisit the $2.20 support level, which previously halted significant downside movements. A decisive close below $2.20 would open opportunities for deeper declines and possibly a retest of lower liquidity pockets. To neutralize ongoing bearish momentum, XRP must successfully reclaim the $2.72 resistance and the 200 MA; failure to do so will maintain a bearish outlook in the short to medium term.