XRP Targets $2 Amid Market Pullback

XRP, a prominent player in the cryptocurrency landscape, finds itself under renewed selling pressure as the wider digital asset market continues to pull back due to macroeconomic anxieties. This trend unfolds as industry watchers assess how XRP will behave near the psychologically critical $2 threshold.

Early Tuesday trading has been defined by broader market turbulence, partly driven by global economic concerns, investor caution, and short-term profit-taking. All eyes are on the U.S. Federal Reserve’s two-day policy meeting, which begins today. With just a 4.4% probability of an interest rate cut, traders are planning on rates staying unchanged, as noted by analysts from Deutsche Bank in their commentary shared with CNBC. The consensus is that the Fed will adopt a neutral tone while avoiding strong forward guidance.

The ripple effect of this uncertainty is being felt across cryptocurrency markets, with several major digital assets experiencing declines. For XRP specifically, the token has shed nearly 4% of its value within the past 24 hours. At the time of reporting, XRP was hovering around the $2.10 level, following a continued series of lower highs and daily losses dating back to May 2.

Since peaking at $2.36 on April 28, XRP has posted losses on six out of the past seven days. The latest decline brings XRP close to its 200-day Simple Moving Average (SMA) on the daily chart, currently positioned at $2.07. With today’s price action dipping towards $2.08, the token is at a pivotal stage in determining whether it can hold ground or face deeper losses.

Key price levels to watch: if XRP falls below the $2 line and manages a daily close underneath it, bearish momentum may intensify. This would expose the next critical support around $1.61—a zone where prior consolidation and buyer interest have historically stepped in to halt declines.

Despite the current downside pressure, XRP’s medium-term outlook remains complex. The token is presently trapped between two significant technical bands: the 50-day SMA near $2.174 and the 200-day SMA around $2.07. Until a breakout in either direction occurs, a period of range-bound movement is likely.

Market sentiment surrounding XRP suggests ongoing accumulation near dips while traders offload positions near local resistance. Notably, if the token succeeds in decisively breaching the $2.60 mark, the path toward $3 could reopen. However, achieving this would require a noticeable shift in momentum combined with favorable macroeconomic cues and perhaps progress in Ripple’s ongoing regulatory developments with the SEC.

In the current environment, XRP remains highly sensitive to external macro drivers. Its correlation with investor expectations on U.S. interest rates, global liquidity, and broader crypto sentiment sets the tone for near-term fluctuations.

For now, XRP traders continue to navigate a cautious market, with volatility expected to remain elevated as central bank updates and regulatory developments unfold over the week.

XRP enthusiasts and investors are keeping a close watch on the upcoming sessions to determine whether bulls can reclaim dominance above $2 or whether bears will take the reins for a deeper correction.

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

Related Reading: XRP Price Prediction for May 5