XRP Faces Critical $2 Support as Pressure Mounts

XRP is currently navigating a crucial juncture as it edges closer to the psychologically significant $2 mark, raising concerns across the crypto landscape. This level has emerged as a key battleground between buyers and sellers, as downward pressure steadily intensifies.

Over the past two days, XRP has experienced a consistent drop in price, gradually shedding its short-term support zones without showing signs of a strong rebound. Candlestick patterns and trading indicators reveal weakening bullish momentum, particularly on the hourly chart. The asset now sits beneath the 26, 50, 100, and 200 exponential moving averages (EMAs), signaling that selling sentiment continues to outweigh buying interest.

Attempts to reclaim territory have been consistently capped between $2.13 and $2.15, reflecting stiff resistance. Compounding the issue is falling trading volume, suggesting that buyers are exhausted, and interest in initiating a continued rally is limited. The RSI, now nearing oversold territory at around 36, would normally indicate room for a bounce—but the absence of volume suggests traders have stepped back, even in the face of potential reversals.

As the price hovers dangerously close to $2, this level now serves as the last significant defense for bullish sentiment. A clean breach below it could trigger widespread liquidation events and emotional selling, particularly among holders who have pinned their hopes on XRP revisiting its earlier highs this year. Given the asset’s broader narrative in 2025 focusing on resilience and recovery, any decline below this threshold could significantly damage investor confidence.

The importance of $2 extends beyond chart patterns—it’s a round-number support, often seen as a psychological anchor. If lost, it signals a broader failure to maintain bullish structure and could prompt a cascade of exits by cautious market participants who perceive any breakdown at this point as a reinforcement of bearish control.

Meanwhile, Ethereum (ETH) finds itself entrenched in an unusually tight consolidation zone. On the hourly chart, ETH is trapped between its 100 EMA and 200 EMA, hovering around $2,430. This narrow band of price activity has emerged after a temporary recovery from sub-$2,300 levels last week. Despite briefly testing resistance near the 200 EMA, the cryptocurrency failed to gather enough strength to break through conclusively.

This prolonged sideways movement indicates that a decisive directional move may be imminent. Technically, a push past the 200 EMA could revive bullish momentum and fuel a recovery toward $2,500 and beyond. However, a move back below the 100 EMA would cast doubt on the strength of last week’s recovery and could invite renewed selling pressure. Adding to the uncertainty is ETH’s quiet trading volume, which has not increased appreciably even during minor rallies. The RSI remains close to 50, reinforcing the overall indecision in the market.

Over in the meme coin world, Shiba Inu (SHIB) is exhibiting a worrying lack of activity as both price movement and volume drop to minimal levels. Currently, SHIB is trading in a narrow band just above $0.00001110 on the hourly chart. Each past bounce off this level has shown diminishing strength, hinting at a potential breakdown if sell pressure ticks up even slightly.

In terms of market structure, SHIB is still not able to surmount stacked resistance levels formed by the 50 EMA, 100 EMA, and 200 EMA. These moving averages now act as a ceiling, reinforcing bearish technical signals. RSI has dipped to around 34, entering territories often labeled as oversold—but in this case, the low reading hasn’t resulted in fresh buying interest. Market participants appear uninterested, possibly waiting for clearer signals or capitulating to the lack of upside momentum.

This extreme thinning of liquidity and absence of meaningful participation means any sudden increase in selling could create a sharp move downward. If SHIB adds another zero to its price, the psychological blow could spark panic among its massive retail holder base. Although such low-volume environments can sometimes precede explosive breakouts, without new catalysts, the prevailing risk remains to the downside.

Overall, the market appears to be at a pivotal point across several major assets. XRP’s struggle near $2 stands as the most immediate technical cliff to watch, making it a vital indicator of sentiment not just for Ripple supporters but for the broader altcoin ecosystem.

Related: Expert Advice: Sell XRP If You’re Confused

Whether XRP manages to hold this crucial line or slips further could influence volatility and confidence across the board, as Ethereum stalls and Shiba Inu slips into an eerie calm. The market awaits its next move as key levels get tested.