XRP Price Under Threat as $2.65 Support Zone Weakens

XRP price is currently facing heightened selling pressure, with an important support level at $2.65 marking a critical threshold for the digital asset. If this support fails to hold, analysts warn that XRP could experience a significant retracement from recent gains, reversing much of its previous upward momentum.

Recently, XRP experienced a notable surge in value, rallying from $0.42 to a peak of $0.74 before encountering challenges near resistance zones. While the rally fueled initial optimism among investors and traders, the situation has since shifted. XRP has now pulled back from its recent high, hovering around the mid $0.60 range, suggesting weakening momentum.

Whale activity has significantly influenced XRP’s recent performance. According to on-chain data, large-scale holders owning between 10 million and one billion XRP appear to have reduced their positions. This sell-off has raised concerns among market watchers, many of whom see it as a sign that institutional investors may be retreating from their bullish stance.

The decline in whale holdings corresponds with a stalled price action, where XRP has been unable to break through critical resistance levels. These levels, particularly around $0.72, now act as major psychological and technical barriers that could cap any short-term recovery efforts. Unless a strong upward push can be sustained, XRP risks falling back to test lower support zones.

The $2.65 level (post rally data point) has taken on particular significance in current market sentiment. This threshold is widely viewed as a key inflection point; a failure to maintain support here could trigger a more pronounced downside move. Technical indicators suggest that if the price slides below this point, XRP could undergo a “full pump retrace,” essentially erasing its previous gains from the recent bullish leg.

Market sentiment around XRP remains mixed, with some analysts highlighting signs of bearish divergence in momentum indicators. Others point out that XRP has historically seen volatile swings following periods of whale redistribution, suggesting that the current downturn could be a temporary shakeout before another potential rally. However, they caution that sustained accumulation by retail investors or a renewed influx from large holders would be needed to support any upward breakout.

Additionally, broader macroeconomic factors and regulatory developments continue to influence XRP’s trajectory. Ongoing legal scrutiny and its implications for Ripple, the company behind XRP, remain pivotal. While Ripple gained partial court victories earlier, any new regulatory announcements could sway investor confidence and affect price stability in the short to medium term.

Looking ahead, traders are watching XRP’s price behavior around the $2.65 zone very closely. Should buying pressure emerge to defend this level, it may lead to a consolidation period followed by another leg up in price. Conversely, if selling intensifies and this support is breached, XRP could be at risk of entering a broader correction phase that may challenge the viability of its recent rally.

In the current environment, market participants are advised to monitor volume trends, whale movements, and key technical support and resistance levels. Given XRP’s historical volatility, cautious trading and risk management strategies are being emphasized by many market observers. As always in the cryptocurrency landscape, trends can shift rapidly, and adaptability remains crucial.

Related: XRP Price: $12M Max Pain for Bears

With the cryptocurrency sector entering a potentially turbulent phase, XRP’s ability to hold its ground above the $2.65 support could make the difference between a new phase of upward growth or a return to lower trading ranges.